<SUBMISSION>
<ACCESSION-NUMBER>0000935703-05-000012
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20050124
<ITEMS>1.01
<FILING-DATE>20050125
<DATE-OF-FILING-DATE-CHANGE>20050125
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DOLLAR TREE STORES INC
<CIK>0000935703
<ASSIGNED-SIC>5331
<IRS-NUMBER>541387365
<STATE-OF-INCORPORATION>VA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-25464
<FILM-NUMBER>05545879
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>500 VOLVO PARKWAY
<STREET2>N/A
<CITY>CHESAPEAKE
<STATE>VA
<ZIP>23320
<PHONE>(757) 321-5000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>500 VOLVO PARKWAY
<CITY>CHESAPEAKE
<STATE>VA
<ZIP>23320
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k012405.htm
<DESCRIPTION>WILLIAMS SETTLEMENT
<TEXT>
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<A NAME=A002></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>UNITED STATES <BR>SECURITIES AND EXCHANGE
COMMISSION <BR> WASHINGTON D.C. 20549 </FONT></P>

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<A NAME=A005></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>FORM 8-K </FONT></P>

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<A NAME=A006></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>CURRENT REPORT PURSUANT <BR>
TO SECTION 13 OR 15(D)OF THE <BR> SECURITIES EXCHANGE ACT OF 1934 </FONT></P>

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<P align=center><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date
of Report (Date of earliest event reported): January 24, 2005 </FONT></P>

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<A NAME=A009></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>DOLLAR TREE STORES, INC. <BR> (Exact name of
registrant as specified in its charter) </FONT></P>

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<A NAME=A011></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>VIRGINIA <BR>(State or Other
Jurisdiction of Incorporation) </FONT></P>








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     <TD WIDTH="45%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">0-25464</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3"></FONT></TD>
     <TD WIDTH="45%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">54-1387365</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="45%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">(Commission File Number)</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3"></FONT></TD>
     <TD WIDTH="45%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">(I.R.S. Employer Identification No.)</FONT></TD></TR>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="3"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="3"></FONT></TD>
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<A NAME=A013></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>500 Volvo Parkway <BR> Chesapeake, VA 23320 <BR>
(Address of Principal Executive Offices and Zip Code) </FONT></P>

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<A NAME=A016></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>(757) 321-5000 <BR>(Registrant&#146;s
Telephone Number, Including Area Code) </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (<I>see
</I>General Instruction A.2. below): </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;|_|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;|_| Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;|_|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;|_|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) </FONT></P>


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<A NAME=A018></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>Item 1.01. Entry into a
Material Definitive Agreement. </FONT></H1>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January 24, 2005, the Orange County, California Superior Court preliminarily approved a
settlement agreement for a putative class action lawsuit filed by Michael Williams and
other exempt store employees. The class covers managerial store associates of Dollar Tree
and 98 Cents Clearance Centers employed in California during the period from July 11, 1997
through December 11, 2004. The litigation alleges that these employees were improperly
classified as exempt, and were not properly paid overtime compensation or provided with
meal and rest breaks, among other things. The settlement, which is still contingent on
final court approval, requires the Company to pay approximately $7.6 million to
participating class members. </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
considering defense costs, potential damages should the plaintiffs prevail, and the
continued diversion of management resources, the Company determined that a settlement was
warranted. The Company denies any liability or wrongdoing of any kind associated with the
claims alleged in the litigation. The Company has continually evaluated its estimate of loss exposure
relating to this complaint and has accrued amounts over time as facts and circumstances
warranted, since the suit was originally filed on July 11, 2001.  The Company does not expect this settlement to have a material impact
on its results of operations or financial condition in either the fourth quarter of or all of fiscal 2004 or in future periods. </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
more than ten class members opt-out of the settlement, the Company may elect to revoke the
Agreement. The settlement is also contingent on the following conditions: </FONT></P>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>o  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>A
declaration from the claims administrator reporting timely notice to and claims by class
members;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>o  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>The
court entering final approval and judgment after conducting a fairness hearing; and  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>o  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>The
final approval and judgment becoming no longer subject to judicial review.  </FONT></TD>
</TR>
</TABLE>
<BR>




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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>If all of the conditions are not
satisfied, the settlement will be of no effect and the parties will retain all respective
claims and defenses. </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>A WARNING ABOUT FORWARD-LOOKING
STATEMENTS: </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=2>This Current Report on Form 8-K
contains &#147;forward-looking statements&#148; as that term is used in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements address future
events, developments or results. Because the terms of the settlement agreement are subject
to further Court approval, the entire description of the terms of the settlement and the
expected financial impact are forward-looking statements that are subject to change. The
foregoing description and financial outlook may be materially inaccurate because the Court
could impose its own changes to the settlement in the future or could accept changes
proposed by others. In addition, the conclusion of the litigation and settlement is
subject to the conditions described above, the possibility of revocation of the agreement
by the Company, and other contingencies. In light of these risks and uncertainties, the
future events or developments described by our forward-looking statements in this document
could turn out to be materially and adversely different from those we discuss or imply. We
are not obligated to release publicly any revisions to any forward-looking statements
contained in this report to reflect events or circumstances occurring after the date of
this report and you should not expect us to do so. </FONT></P>


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<A NAME=A019></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>SIGNATURES </FONT></P>

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<P><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, hereunto duly authorized. </FONT></P>

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<A NAME=A020></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Helvetica, Sans-Serif" size=3>DATE: January 25, 2005 </FONT></P>











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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>DOLLAR TREE STORES, INC.</B><BR><BR>
<BR>By: /s/ Kent A. Kleeberger<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Kent A. Kleeberger<BR>Chief Financial Officer</FONT></TD>
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</SUBMISSION>
