Press release from Business Wire
Lieff Cabraser Announces Class Action Litigation Against Lumber Liquidators Holdings, Inc. - LL
Saturday, December 07, 2013
Lieff Cabraser Announces Class Action Litigation Against Lumber Liquidators Holdings, Inc. - LL09:00 EST Saturday, December 07, 2013
SAN FRANCISCO (Business Wire) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of purchasers of the securities of Lumber Liquidators Holdings, Inc. (“Lumber Liquidators” or the “Company”) (NYSE:LL) between February 22, 2012 and November 21, 2013, inclusive (the “Class Period”).
If you purchased the securities of Lumber Liquidators during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 27, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Lumber Liquidators investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Lumber Liquidators Securities Class Litigation
Lumber Liquidators, headquartered in Toano, Virginia, is a multi-channel specialty retailer of hardwood flooring and hardwood flooring enhancements and accessories, operating as a single business segment.
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, SeekingAlpha.com published an article alleging, among other things, that tests of one of Lumber Liquidators' branded wood flooring products (imported from China and sold in California) at two independent accredited laboratories found that formaldehyde emissions from the tested product were over 3.5 times the maximum legal limit, despite the fact that the product was labeled as compliant with California Air Resources Board regulations. On this news, Lumber Liquidators' share price fell $9.40 over the course of two trading sessions, or nearly 11%, from a closing price of $86.03 on June 19, 2013, to close at $76.63 per share on June 21, 2013.
On September 26, 2013, the Department of Homeland Security, the U.S. Fish and Wild Life Service, and the Department of Justice executed sealed search warrants at the Company's corporate offices, in connection with the importation of certain wood products. On this news, Lumber Liquidators' share price declined $5.83 per share, or more than 5%, from a closing price of $112.96 on September 26, 2013, 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. Mr. Tilson explained that the Company was only able to maintain its huge margins as a result of importing illegal timber. On this news, the Company's share price fell $13.55 per share, or nearly 12%, from a closing price of $115.36 per share on November 21, 2013, to close at $101.81 per share on November 22, 2013.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Source/Contact for Media Inquiries Only:
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 1-800-541-7358