NEW YORK -- Bronstein, Gewirtz & Grossman, LLC says it has filed a securities class action in the United States District Court for the Eastern District of Virginia on behalf of those who purchased shares of Lumber Liquidators Holdings, Inc. between November 25, 2013 and July 9, 2014.
The firm acknowledges no class has been certified by the court, indicating it is still seeking plaintiffs to join the suit. "Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients," the firm notes in its announcement.
The complaint charges Lumber Liquidators and certain of its executives with violations of federal securities laws, alleging the Company misrepresented that quality control requirements implemented by Lumber Liquidators would neither affect its extensive and diverse supplier network, nor impact its revenue, earnings, or margins.; and that it "continually touted" growth would continue.
"As a result of the foregoing, Lumber Liquidators stock traded at artificially inflated prices during the class period," says a statement about the claim from Bronstein.
In July Lumber Liquidators reported a slow down in traffic at its stores, and its stock dropped in value.
A lawsuit was filed in July 2014 against Lumber Liquidators, charging Chinese-made flooring sold by the company emits formaldehyde at levels far above permissible California Air Resource Board levels, requiring cancer warning labels according to California law.
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