Mohawk Shareholder Alert: March 3, 2020 Filing Deadline in Class Action – Contact Lieff Cabraser
23 January 2020 - 1:00AM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been filed on behalf of
investors who purchased shares of the common stock of Mohawk
Industries, Inc. (“Mohawk” or the “Company”) (NYSE: MHK) between
April 28, 2017 and July 25, 2019, inclusive (the “Class
Period”).
If you purchased shares of the common stock of Mohawk during the
Class Period, you may move the Court for appointment as lead
plaintiff by no later than March 3, 2020. A lead plaintiff is a
representative party who acts on behalf of other class members in
directing the litigation. Your share of any recovery in the actions
will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff Cabraser, or
other attorneys, as your counsel in the action.
Mohawk investors who wish to learn more about the litigation and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
Mohawk, incorporated and headquartered in Calhoun, Georgia, is a
global manufacturer of flooring products, including ceramic and
porcelain tile and natural stone products, carpets, rugs, laminate,
hardwood flooring, sheet vinyl, and luxury vinyl tile, or LVT.
The complaint alleges that throughout the Class Period,
Defendants made materially false and/or misleading statements
and/or failed to disclose that Mohawk engaged in a scheme to
inflate its revenues and earnings by stuffing the channel with its
conventional flooring products and booking fictitious sales of
those products. Defendants made false and misleading statements
about Mohawk’s sales growth and the demand for its conventional
flooring products. Defendants also reassured investors about
Mohawk’s increasing accounts receivable and inventory levels by
falsely attributing those increases to market factors including
rising raw material costs and inflation.
The truth about Defendants’ fraudulent scheme was revealed
beginning on July 25, 2018, when the Company reported disappointing
financial results well below its previous guidance and Wall Street
estimates. The Company also announced that it would be reducing
production, which indicated that its sales channels were stuffed
with more product than it was able to sell. Following this news,
Mohawk’s stock price declined $38.06 per share, or 17%, from its
closing price on July 25, 2018 to close at $179.31 on July 26,
2018.
On October 25, 2018, Mohawk reported its financial results for
the third quarter of 2018 that was well below analysts’ estimates.
Mohawk executives attributed the disappointing results, in part, to
further manufacturing reductions that were required to control
inventory buildup. On this news, the Company’s stock price fell
$36.03 per share, or 23.9%, from its closing price on October 25,
2018 to close at $115.03 per share on October 26, 2018.
On July 26, 2019, Mohawk reported that it was again reducing
production to control inventory levels so that supply matched
customer demand. Following this news, the price of Mohawk stock
fell nearly 18% to close at $128.84 on July 26, 2019.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for fourteen years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs’ bar and that demonstrated unusual
dedication and creativity.” Law360 has selected Lieff Cabraser as
one of the Top 50 law firms nationwide for litigation, highlighting
our firm’s “laser focus” and noting that our firm routinely finds
itself “facing off against some of the largest and strongest
defense law firms in the world.” Benchmark Litigation has named
Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in
America.”
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
https://www.lieffcabraser.com/.
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/20200122005205/en/
Sharon M. Lee Lieff Cabraser Heimann & Bernstein, LLP
Telephone: 1-800-541-7358
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