Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Tile Shop Holdings, Inc.
November 18, 2013
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of common stock and call options and sellers of put options of Tile Shop Holdings, Inc. (“Tile”) (NASDAQ:TTS) during the period between August 22, 2012 and November 13, 2013 (the “Class Period”).
The lawsuit claims that Tile failed to disclose that one of its largest suppliers, Beijing Pingxiu (“BP”), is an undisclosed related company secretly controlled by Fumitake Nishi, the brother-in-law of the Company’s CEO and a Tile employee. On November 14, 2013, Gotham City Research LLC issued a report asserting that the Tile: (a) exaggerated its true financial performance; (b) failed to disclose BP as a material related party supplier; (c) uses BP to overstate inventories, understate cost of sales and overstate gross profits; (d) purchases goods from BP at or near cost to allow Tile to achieve an artificial cost advantage; and (e) overstates earnings. Plaintiffs allege that when this adverse information entered the market, the price of Tile shares dropped substantially, damaging investors.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Tile securities during the Class Period. If you invested in Tile securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than January 14, 2014.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.