MOHAWK DEADLINE ALERT Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Mohawk Industries, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Mohawk Industries, Inc. (“Mohawk” or the “Company”) (NYSE:MHK) of the March 3, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Mohawk stock or options between April 28, 2017 and July 25, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/MHK. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Northern District of Georgia on behalf of all those who purchased Mohawk securities between April 28, 2017 and July 25, 2019 (the “Class Period”). The case, Public Employees' Retirement System of Mississippi v. Mohawk Industries, Inc. et al,. No. 20-cv-00005 was filed on January 3, 2020 and has been assigned to Judge Eleanor L. Ross.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and misleading statements about the Company’s sales growth and demand for its Conventional Flooring Products. Despite the Company’s accounts receivable and inventory levels increasing during the Class Period, Defendants assuaged investor concerns by misleading them to believe that those increases were the result of external factors like rising raw material costs and inflation. But in reality, Mohawk was engaging in channel-stuffing to artificially inflate its sales and revenues. Defendants failed to disclose that Mohawk was stuffing its distribution channels with Conventional Flooring Products, which made the Company’s sales growth and financial performance appear far better than they were. As a result of these misrepresentations, shares of Mohawk’s common stock traded at artificially inflated prices during the Class Period.
Specifically, on July 25, 2018, after the market closed, the Company reported disappointing financial results for the second quarter of 2018, with earnings that were well below both Wall Street estimates and the Company’s previous guidance range. The following morning, in a conference call with analysts and investors, Mohawk also disclosed deteriorating margins which it attributed, in part, to significant production cuts the Company imposed to normalize inventory. Specifically, the Company revealed that it “produced less [Conventional Flooring Products] than [it] sold to reduce inventory.” Similarly, Mohawk also revealed that it “reduced [its] production volumes more than [the Company] had thought” and that the Company “came into the year with higher inventories than [it] wanted to have.”