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") 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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