TMCnet News
Deadline Reminder: The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Mohawk Industries, Inc.Law Offices of Howard G. Smith reminds investors of the upcoming March 3, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Mohawk Industries, Inc. ("Mohwak" or the "Company") (NYSE: MHK) common stock between April 28, 2017 and July 25, 2019, inclusive (the "Class Period"). Investors suffering losses on their Mohawk investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected]. On July 25, 2018, after the market closed, the Company announced disappointing financial results for second quarter 2018, disclosing that Mohawk "reduced [its] production volumes more than [the Company] had thought" and that it "came into the year with higher inventories than [it] wanted to have." On this news, the Company's share price fell $38.06, or over 17%, to close at $179.31 per share on July 26, 2018, thereby injuring investors. Then, on October 25, 2018, after the market closed, Mohawk reported third quarter 2018 financial results that fell below the Company's guidance, stating that "[t]o improve [its] inventory turns, [Mohawk was] presently mnufacturing fewer units than [it was] selling, which is negatively impacting [its] costs." On this news, the Company's share price fell $36.04, or nearly 24%, to close at $115.03 per share on October 26, 2018, thereby injuring investors further. Then, on July 25, 2019, after the market closed, Mohawk reported that sales in its Flooring NA segment declined 7% year-over-year and that there was "big buildup in inventory in ceramic." On this news, the Company's share price fell $27.52, or nearly 18%, to close at $128.84 per share on July 26, 2019, thereby injuring investors further. The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company engaged in deceptive and unsustainable sales practices to mask declining customer demand for its Conventional Flooring products; (2) that Mohawk's increasing inventories was not the result of increasing inflation or the Company's backward integration, but instead the result of the Company deliberately stuffing the channels with Conventional Flooring Products to boost sales; and (3) that as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. If you purchased Mohawk common stock during the Class Period, you may move the Court no later than March 3, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. View source version on businesswire.com: https://www.businesswire.com/news/home/20200113005134/en/ |
