Press release from Business Wire
Class Action Lawsuit Against Lumber Liquidators Being Investigated by Gilman Law LLP
Tuesday, December 03, 2013
Class Action Lawsuit Against Lumber Liquidators Being Investigated by Gilman Law LLP17:52 EST Tuesday, December 03, 2013
NAPLES, Fla. (Business Wire) -- Securities lawyers at Gilman Law LLP are investigating a securities class action lawsuit that was filed by an investor against Lumber Liquidators Holdings Inc. and certain officers and/or directors in the U.S. District Court for the Eastern District of Virginia (No. 4:13cv00157). The case was filed on behalf of all persons or entities who purchased or otherwise acquired Lumber Liquidators common stock (NYSE:LL) between February 22, 2012 and November 21, 2013 (inclusive), alleging that certain false and/or misleading statements were made by Lumber Liquidators within said period in violation of federal law.
According to Lumber Liquidators' website, the company is headquartered in Toano, Virginia, and has stores in 46 states and over 1000 employees. It is a national retailer of solid and engineered hardwood, laminate flooring, bamboo flooring, cork flooring, and resilient vinyl flooring. The complaint against Lumber Liquidators is generally focused on two key areas of alleged misconduct.
First, the plaintiff alleges that Lumber Liquidators made false and/or misleading statements and/or failed to disclose that certain of Lumber Liquidators' products did not comply with applicable laws and regulations pertaining to formaldehyde emissions from composite wood products. This allegation stems from a June 20, 2013, report on SeekingAlpha.com, which claimed that Lumber Liquidators was selling imported hardwood flooring products that contained illegal levels of formaldehyde, which is a known cancer-causing agent (Complaint, p.3). On this news, the Complaint contends that Lumber Liquidators' share price declined, over the course of two trading sessions, $9.40 per share or nearly 11%, to close at $76.63 per share on June 21, 2013 (Complaint, p.3).
Second, the Wall Street Journal reported that federal authorities, including agents from the Department of Homeland Security Investigations and the Department of Justice, raided the headquarters of Lumber Liquidators on September 26, 2013. The Wall Street Journal later reported the agents were looking for imported wood products from the Russian Far East. Subsequently, on November 21, 2013, a well-known hedge fund manager criticized Lumber Liquidators Holdings for allegedly importing illegally sourced timber from Russia in violation of U.S. laws (Complaint, p.5). On this news, the Complaint contends that Lumber Liquidators' share price fell over $16.07 per share, or over 13%, to $99.29 per share over two trading sessions. (Complaint, p. 5).
If you are an investor who purchased or acquired Lumber Liquidators common stock between February 22, 2012 and November 21, 2013 (inclusive), and suffered a loss or would like more information on this class action, then please contact Gilman Law LLP today, at 1-888-252-0048 or www.gilmanlawllp.com, to ensure your legal rights are not forfeited.
About Gilman Law LLP
Gilman Law LLP, a leading financial law firm with offices in Florida and Massachusetts, has been recognized for delivering successful results to their clients across a broad range of claims stemming from securities class actions and derivative actions to consumer product injury lawsuits. For over 34 years, the Gilman Law LLP team of highly experienced lawyers has earned renown for tireless work on behalf of their clients on many of today's most challenging and important legal issues.
Gilman Law LLP
Kenneth G. Gilman, 1-888-252-0048