Shareholder Alert: Pomerantz Law Firm Announces the Filing of a Class Action Against Furniture Brands International, Inc. & C...
09 October 2013 - 7:56AM
Marketwired
Shareholder Alert: Pomerantz Law Firm Announces the Filing of a
Class Action Against Furniture Brands International, Inc. and
Certain Officers - FBNI
NEW YORK, NY--(Marketwired - Oct 8, 2013) - Pomerantz Grossman
Hufford Dahlstrom & Gross LLP has filed a class action lawsuit
against Furniture Brands International, Inc. ("FBN" or the
"Company") (OTCQB: FBNIQ) and certain of its officers. The
class action, filed in United States District Court, Eastern
District of Missouri, and docketed under 13-cv-01703, is on behalf
of a class consisting of all persons or entities who purchased or
otherwise acquired securities of FBN between February 13, 2013 and
August 5, 2013 both dates inclusive (the "Class Period"). This
class action seeks to recover damages against the Company and
certain of its officers and directors as a result of alleged
violations of the federal securities laws pursuant to Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder.
If you are a shareholder who purchased FBN securities during the
Class Period, you have until October 15, 2013 to ask the Court
to appoint you as Lead Plaintiff for the class. A copy of the
Complaint can be obtained at www.pomerantzlaw.com. To discuss
this action, contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
FBN manufactures and distributes residential furniture. The
Company's products include stationary upholstery products,
occasional furniture, recliners and sleep sofas. The Company's
trade names include, among others, Thomasville, Broyhill, Lane, and
Drexel Heritage.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business and operations. Specifically,
Defendants made false and misleading statements and/or failed to
disclose that: (a) the Company was experiencing weaknesses in its
wholesale business; (b) the Company's trade names were being
carried at inflated values that would require material impairments;
(c) the Company was experiencing severe liquidity issues; (d) and
based upon the above, the Defendants lacked a reasonable basis for
their positive statements about the Company during the Class
Period.
On August 6, 2013, prior to the open of the financial markets,
the Company issued a press release, reporting the Company's second
quarter financial results for the quarter ending June 29, 2013. The
Company disclosed a material impairment and that it would need to
address liquidity challenges and improve business performance by
implementing strategic initiatives to achieve cost reductions,
pursuing asset sales and working with its lenders to potentially
modify its credit facilities. On this news, shares of FBN
declined $0.84 per share, more than 38%, to close at $1.37 per
share on August 6, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida,
and San Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L. Pomerantz, known as the dean of the
class action bar, the Pomerantz Firm pioneered the field of
securities class actions. Today, more than 70 years later, the
Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class
members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford
Dahlstrom & Gross LLP Email Contact