The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Mohawk Industries,...
February 05 2020 - 08:58PM
Business Wire
The Law Offices of Frank R. Cruz reminds investors of the
upcoming March 3, 2020 deadline to file a lead plaintiff
motion in the class action filed on behalf of Mohawk Industries,
Inc. (“Mohawk” or the “Company”) (NYSE: MHK)) investors who
purchased securities between April 28, 2017 to July 25,
2019, inclusive (the “Class Period”).
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.
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If you purchased or otherwise acquired Mohawk securities during
the Class Period, you may move the Court no later than March 3,
2020 to request appointment as lead plaintiff in this putative
class action lawsuit. To be a member of the class action 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
action. If you wish to learn more about this class action, or if
you have any questions concerning this announcement or your rights
or interests with respect to the pending class action lawsuit,
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/20200205005915/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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