SAN DIEGO - An investigation was announced on behalf of investors who currently hold shares of Lumber Liquidators Holdings Inc (NYSE:LL) over potential breaches of fiduciary duties by certain officers and directors of Lumber Liquidators Holdings Inc that caused damages to the company and stockholders.
Investors who are current long term investors in Lumber Liquidators Holdings Inc () shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors instocks follows a lawsuit that was filed recently against Lumber Liquidators Holdings Inc over alleged securities laws violations. The investigation on behalf of current long term investors in stocks concerns whether certain Lumber Liquidators Holdings officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Eastern District of Virginia the plaintiff alleges that Lumber Liquidators Holdings Inc violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the plaintiff alleges that defendants made allegedly false and/or misleading statements and/or failed to disclose that certain of Lumber Liquidators Holdings Inc’s products failed to comply with applicable laws and regulations governing formaldehyde emissions from composite wood products, that Lumber Liquidators Holdings Inc imported flooring products sourced from illegally logged wood in the Russian Far East in violation of the Lacey Act, that as a result of the foregoing violations, Lumber Liquidators Holdings Inc faces the risk of large fines, penalties, forfeitures, judgments and/or settlements in connection with government regulatory actions and/or consumer class actions, and that as a result of the foregoing, Lumber Liquidators Holdings Inc's statements were materially false and misleading at all relevant times.
On June 20, 2013 a report alleged that Lumber Liquidators Holdings Inc was selling hardwood flooring (imported from China and sold in California) products containing illegal levels of formaldehyde -a known carcinogen. Shares of Lumber Liquidators Holdings Inc declined from $88.40 per share on June 18, 2013, to as low as $71.758 on June 24, 2013.
Then on September 27, 2013 Lumber Liquidators Holdings Inc commented on actions taken by Federal authorities, which relate to the importation of certain of the Company's wood flooring products. Lumber Liquidators Holdings Inc said that on Sept. 26, 2013, sealed search warrants were executed at Lumber Liquidators Holdings’ corporate offices in Toano and Richmond, Virginia by the Department of Homeland Security's Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service. Shares of Lumber Liquidators Holdings Inc grew fr$76.33 per share in June 2013 to as high as $119.44 per share on November 15, 2013.
Then on November 21, 2013, a well known hedge fund manager criticized Lumber Liquidators Holdings Inc for allegedly importing illegally sourced timber from Russia in direct violation of U.S. laws.
L shares declined from $119.44per share on November 15, 2013, to $86.278 per share on December 11, 2013.
On January 14, 2014 shares of Lumber Liquidators Holdings Inc closed at $101.71 per share.
Those who purchased shares of Lumber Liquidators Holdings Inc () have certain options and should contact the Shareholders Foundation.
Source: Shareholders Foundation Inc.
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