SOURCE: Bernstein Litowitz Berger & Grossmann LLP

September 17, 2014 16:14 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against Lumber Liquidators Holdings, Inc. and Certain of Its Senior Executives

NEW YORK, NY--(Marketwired - Sep 17, 2014) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it filed a securities class action lawsuit on behalf of its client City of Hallandale Beach Police Officers' and Firefighters' Personnel Retirement Trust ("Hallandale") against Lumber Liquidators Holdings, Inc. ("Lumber Liquidators" or the "Company") (NYSE: LL), and certain of its senior executives (collectively "Defendants"). The action, which was filed in the U.S. District Court for the Eastern District of Virginia, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t(a), and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5, on behalf of investors who purchased or otherwise acquired Lumber Liquidators common stock during the period from November 25, 2013 and July 9, 2014, inclusive (the "Class Period").

The Complaint alleges that during the Class Period, Lumber Liquidators and certain of its senior executives violated provisions of the Exchange Act by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC"), and statements during investor conference calls. Headquartered in Toano, Virginia, Lumber Liquidators is one of the largest retailers of hardwood flooring in North America. The Company prides itself on its commitment to in-stock inventory levels and a focused supply chain that allow it to consistently meet customers' expectations.

As alleged in the Complaint, Defendants misrepresented that quality control requirements implemented by Lumber Liquidators would neither affect its extensive and diverse supplier network, nor impact its revenue, earnings, or margins. In addition, Lumber Liquidators continually touted that it would continue to experience revenue and earnings growth and margin expansion. As a result of these misrepresentations, Lumber Liquidators stock traded at artificially inflated prices during the Class Period.

On July 9, 2014, the Company announced poor financial results, which it attributed to lower than planned inventory levels stemming from production delays as Lumber Liquidators enhanced its quality assurance requirements. Lumber Liquidators also revealed that heavy discounting during the Class Period caused margins to contract in the second quarter compared to the same quarter in 2013. These disclosures caused a material decline in the price of Lumber Liquidators stock.

If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than November 17, 2014, which is the first business day on which the District Court for the Eastern District of Virginia is open that is 60 days after today. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

Hallandale is represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    New York, NY 10019
    (212) 554-1493