Shareholder Alert: Robbins LLP Reminds Investors Mohawk Industries, Inc. (MHK) Sued for Misleading Shareholders
February 10 2020 - 12:33PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that a
purchaser of Mohawk Industries, Inc. (NYSE: MHK) filed a class
action complaint for alleged violations of the Securities Exchange
Act of 1934 between April 28, 2017 and July 25, 2019. Mohawk
Industries designs, manufactures, sources, distributes, and markets
flooring products for residential and commercial spaces
worldwide.
If you suffered a loss as a result of Mohawk's misconduct, click
here.
Mohawk Industries, Inc. (MHK) Accused of
Channel-Stuffing
According to the complaint, to address the mounting market
demand of Luxury Vinyl Tile ("LVT") flooring material, in June
2015, Mohawk acquired IVC Group, an LVT manufacturer, in a deal
worth $1.2 billion. However, the market's emphasis on LVT left
Mohawk scrambling to bolster sales in its conventional flooring
products, and as a result, Mohawk began channel-stuffing to conceal
its dismal sales growth and financial performance. Beginning in
April 2017, Mohawk touted its purported "growing demand" for its
conventional flooring products and continued to highlight its sales
growth throughout the relevant period, allowing its stock to trade
at an artificially inflated price. Then, on July 25, 2019, after
Mohawk had repeatedly reported financial results that missed
analysts' estimates and the Company's guidance range, Mohawk
reported sales in its Flooring NA segment that were down 7% and
finally revealed that "lower demand" for certain conventional
flooring products created excess inventory that impacted Mohawk's
sales and margins. On this news, Mohawk's stock dropped $27.76,
nearly 18%, to close at $128.84. The stock has yet to recover.
Mohawk Industries, Inc. (MHK) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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