Five Below has faced various corporate and legal challenges over recent years, including regulatory scrutiny and class-action litigation. For instance, state regulatory bodies like the Michigan Attorney General's office raised concerns regarding pricing discrepancies and scanner overcharges across multiple store locations, prompting administrative enforcement notices. Additionally, institutional investor lawsuits filed by firms such as Bernstein Litowitz Berger & Grossmann LLP addressed issues related to corporate disclosures, inventory shrink, and executive leadership transitions during challenging financial reporting cycles.