A retirement trust fund has filed a class action lawsuit against Lumber Liquidators. The lawsuit, the sixth filed against the company since fall, alleges Lumber Liquidators issued false and misleading press releases, financial statements, SEC filings and statements during investor conference calls.
A retirement trust fund has filed a class action lawsuit against Lumber Liquidators. The lawsuit, the sixth filed against the company since fall, alleges Lumber Liquidators issued false and misleading press releases, financial statements, SEC filings and statements during investor conference calls.
The complaint specifically alleges that quality control requirements implemented by Lumber Liquidators did, contrary to statements made by the company, impact revenue, earnings or margins.
On July 9, the company's second quarter results showed a 18.7 percent loss in profit compared with the second quarter of 2013. Net sales in comparable stores dropped 7.1 percent. Lumber Liquidators' stock plummeted 20 percent after the results were announced.
As of today, Lumber Liquidator stock is selling at $55 compared with $76 before crashing in July.
So far, Lumber Liquidators has not commented. "Lumber Liquidators does not comment on pending or in-progress litigation of this nature," the company said by way of spokesperson Leigh Parrish.
The lawsuit's proposed class, which has not been certified by a judge, includes investors who purchased stock in the company between Nov. 25, 2013, and July 9, 2014.
Bernstein, Litowitz, Berger & Grossmann LLP, the law firm that filed on behalf of the retirement trust, is looking for a lead plaintiff to file a motion with the U.S. District Court for the Eastern District of Virginia before the Nov. 7 deadline elapses, according to a statement from the firm. Other law firms are also looking to identify lead plaintiffs in the case.