LOS ANGELES--(BUSINESS WIRE)--Jan. 9, 2020--
Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased Mohawk Industries, Inc. (“Mohawk” or the “Company”) (NYSE: MHK) common stock between April 28, 2017 and July 25, 2019, inclusive (the “Class Period”). Mohawk investors have untilMarch 3, 2020to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
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 manufacturing 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.
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If you purchased Mohawk common stock during the Class Period, you may move the Court no later than March 3, 2020to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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Source: Glancy Prongay & Murray LLP
Glancy Prongay and Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224