SAN FRANCISCO, Jan. 4, 2020 /PRNewswire/ -- Hagens Berman urges investors in Mohawk Industries, Inc. (NYSE: MHK) to submit their losses now to learn if they qualify to recover their investment losses. A class action complaint against the Company and its senior executives has been filed.
Apr. 28, 2017 – July 25, 2019
Lead Plaintiff Deadline:
Mar. 3, 2020
Contact An Attorney Now:
Mohawk Industries, Inc. (MHK) Securities Class Action:
The complaint alleges that throughout the Class Period, Defendants made false and misleading statements about Mohawk's sales growth and the demand for the Company's conventional flooring products. The complaint also alleges that Defendants falsely reassured investors about the Company's increasing accounts receivable and inventory levels during the Class Period by deceptively attributing those increases to external factors like rising raw material costs and inflation. According to the complaint, in truth, Defendants were engaging in fraudulent channel stuffing, booking fictitious sales of its flooring products.
The market learned the truth through a series of corrective disclosures between July 26, 2018 and July 26, 2019, when Mohawk reported disappointing financial results and reduced production to control inventory levels and match its supply with waning customer demand. These disclosures caused the price of MHK shares to decline precipitously, thereby injuring Mohawk investors.
"We're focused on investors' losses and proving Mohawk stuffed the channel to mask declining demand for its conventional flooring products," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Mohawk and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Mohawk should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MHK@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP