The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Mohawk Industries, Inc., Inve...
January 29 2020 - 8:42PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of persons and entities that
purchased or otherwise acquired Mohawk Industries, Inc. (“Mohawk”
or the “Company”) (NYSE: MHK) securities between April 28, 2017
and July 25, 2019, inclusive (the “Class Period”). Sealed Air
investors have until March 3, 2020 to file a lead plaintiff
motion.
If you are a shareholder who suffered a loss, click here to
participate.
On July 25, 2018, after the market closed, the Company announced
disappointing financial results for second quarter 2018, disclosing
that Mohawk “reduced [its] production volumes more than [the
Company] had thought” and that it “came into the year with higher
inventories than [it] wanted to have.”
On this news, the Company’s share price fell $38.06, or over
17%, to close at $179.31 per share on July 26, 2018, thereby
injuring investors.
Then, on October 25, 2018, after the market closed, Mohawk
reported third quarter 2018 financial results that fell below the
Company’s guidance, stating that “[t]o improve [its] inventory
turns, [Mohawk was] presently manufacturing fewer units than [it
was] selling, which is negatively impacting [its] costs.”
On this news, the Company’s share price fell $36.04, or nearly
24%, to close at $115.03 per share on October 26, 2018, thereby
injuring investors further.
Then, on July 25, 2019, after the market closed, Mohawk reported
that sales in its Flooring NA segment declined 7% year-over-year
and that there was “big buildup in inventory in ceramic.”
On this news, the Company’s share price fell $27.52, or nearly
18%, to close at $128.84 per share on July 26, 2019, thereby
injuring investors further.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that the Company engaged in deceptive and
unsustainable sales practices to mask declining customer demand for
its Conventional Flooring products; (2) that Mohawk’s increasing
inventories was not the result of increasing inflation or the
Company’s backward integration, but instead the result of the
Company deliberately stuffing the channels with Conventional
Flooring Products to boost sales; and (3) that as a result,
defendants' statements about its business, operations, and
prospects, were materially false and misleading and/or lacked a
reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Mohawk securities during the Class Period, you
may move the Court no later than March 3, 2020 to ask the
Court to appoint you as lead plaintiff. To be a member of the Class
you need not take any action at this time; you may retain counsel
of your choice or take no action and remain an absent member of the
Class. If you purchased Mohawk securities, have information or
would like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Frank R. Cruz, of The Law
Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los
Angeles, California 90067 at 310-914-5007, by email to
info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200129005854/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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