Press release from Business Wire
Wohl & Fruchter LLP Has Filed a Class Action Against Lumber Liquidators Holdings, Inc. and Certain Of Its Officers
Tuesday, December 03, 2013
Wohl & Fruchter LLP Has Filed a Class Action Against Lumber Liquidators Holdings, Inc. and Certain Of Its Officers09:30 EST Tuesday, December 03, 2013
NEW YORK (Business Wire) -- The law firm of Wohl & Fruchter LLP has filed a class action lawsuit against Lumber Liquidators, Inc. (“Lumber Liquidators” or the “Company”) (NYSE: LL) and certain of its officers. The class action, filed in the United States District Court, Eastern District of Virginia, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Lumber Liquidators securities between February 22, 2012 and November 21, 2013, both dates inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Lumber Liquidators securities during the Class Period, you have until January 27, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at: http://www.wohlfruchter.com/cases/ll.
To discuss this action, and learn more about applying for Lead Plaintiff, please contact us at 866.833.6245, or the attorney in charge of the case, J. Elazar Fruchter, at 845.425.4658, or firstname.lastname@example.org.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and/or failed to disclose that: (1) certain of the Company's wood flooring 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 3.5x the maximum legal limit even though the product was labeled as being California Air Resources Board-compliant.
On September 26, 2013, agents from the Department of Homeland Security, the U.S Fish and Wild Life 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 22, 2013, well known hedge fund manager Whitney Tilson suggested that “a meaningful percentage” of Lumber Liquidators' Asian-sourced wood “is from Chinese mills that are trafficking in illegal wood,” and “a meaningful portion of [Lumber Liquidators'] margin expansion could be due to buying illegal wood.” Tilson also claimed that resolving these issues would likely disrupt Lumber Liquidators' supply chain and materially impact margins. On this news the Company's shares fell from a close of $115.36 per share on November 21, 2013, to a close of $101.81 per share on November 22, 2013.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from securities fraud and fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
This release may be deemed to constitute attorney advertising.
Wohl & Fruchter LLP
J. Elazar Fruchter
845-425-4658 or Toll Free 866-833-6245