NEW YORK, Jan. 8, 2020 /PRNewswire/ -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Georgia on behalf of investors that purchased Mohawk Industries, Inc. (NYSE: MHK) securities between April 28, 2017 and July 25, 2019 (the "Class Period"). Investors have until March 3, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Through a series of corrective disclosures between July 26, 2018 and July 26, 2019, Mohawk reported disappointing financial results and reduced production to control inventory levels and match its supply with waning customer demand. These disclosures caused the price of Mohawk shares to decline significantly.
The complaint, filed on January 3, 2020, alleges that throughout the Class Period defendants made false and misleading statements about Mohawk's sales growth and the demand for the Company's conventional flooring products. The complaint also alleges that defendants falsely reassured investors about the Company's increasing accounts receivable and inventory levels during the Class Period by deceptively attributing those increases to external factors like rising raw material costs and inflation. According to the complaint, in truth, defendants were engaging in fraudulent channel stuffing, booking fictitious sales of its flooring products.
If you purchased Mohawk Industries securities during the Class Period, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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