NEW YORK - Bernstein Liebhard LLP today announced that a securities class action lawsuit has been commenced in the United States District Court for the Eastern District of Virginia on behalf of purchasers (the "Class") of securities of Lumber Liquidators, Inc. ("Lumber Liquidators" or the "Company") (NYSE: LL) during the period between February 22, 2012 and November 21, 2013 (the "Class Period").
Lumber Liquidators is a multi-channel specialty retailer of hardwood flooring and hardwood flooring enhancements and accessories.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) certain of the Company's products failed to comply with applicable laws and regulations governing formaldehyde emissions from composite wood products; (2) the Company imported flooring products sourced from illegally logged wood in the Russian Far East in violation of the Lacey Act; (3) as a result of the foregoing violations, the Company faces the risk of large fines, penalties, forfeitures, judgments and/or settlements in connection with government regulatory actions and/or consumer class actions; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On June 20, 2013, an article published on SeekingAlpha.com alleged that, among other things, testing of one of Lumber Liquidators' branded wood flooring products (imported from China and sold in California) at two accredited independent laboratories found that formaldehyde emissions from the tested product were over 3.5 times the maximum legal limit even though the product was labeled as being California Air Resources Board-compliant. On this news, Lumber Liquidators shares declined, over the course of two trading sessions, by $9.40 per share or nearly 11%, to close at $76.63 per share on June 21, 2013.
On September 26, 2013, agents from the Department of Homeland Security, the U.S Fish and Wildlife Service, and the Department of Justice executed sealed search warrants at Lumber Liquidators' corporate offices in Toano and Richmond, Virginia, related to the importation of certain wood products. On this news, Lumber Liquidators shares declined $5.83 per share or more than 5%, to close at $107.13 per share on September 27, 2013.
On November 21, 2013, hedge fund manager Whitney Tilson criticized the Company for importing illegally sourced timber from Russia in direct violation of U.S. laws. Tilson explained that the Company was only able to maintain its unbelievably high margins, and thus inflate its revenues, as a result of importing illegal timber. On this news, the Company's shares fell over $16.07 per share, or over 13%, to $99.29 per share over two trading sessions.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Lumber Liquidators securities during the Class Period. If you invested in Lumber Liquidators securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than January 27, 2014.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Source: Bernstein Liebhard LLP
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