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San Francisco, California--(Newsfile Corp. - October 2, 2020) - Hagens Berman urges Interface, Inc. (NASDAQ: TILE) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.
Interface, Inc. (TILE) Investigation:
The investigation centers on the propriety of Interface's financial reporting, including its accounting for certain expenses such as management bonus accruals, independent consultant fees and stock based compensation.
From the 2Q 2015 - 2Q 2016, Interface pleased investors when it reported income and earnings per share growth, consistently meeting or exceeding analysts' estimates. The Company attributed the increased margins to its "lean manufacturing initiatives, higher manufacturing volume, improved selling prices, and lower raw material costs and usage."
But on Apr. 24, 2019, Interface announced that the SEC had served three separate subpoenas on the Company, probing its earnings per share calculations from 2014 - 2017. The Company also announced that it had placed its Chief Accounting Officer Gregory Bauer on administrative leave when it learned Bauer added notes to materials produced to the SEC.
Then, on Sept. 28, 2020, the SEC filed a settled action against the Company for violations that resulted in the improper reporting of quarterly EPS. Specifically, the SEC order found that during Q2 2015 through Q2 2016 Interface made unsupported manual accounting adjustments to certain expenses to meet EPS estimates. The SEC also found that Bauer, and former Chief Financial Officer (Patrick Lynch) directed the unsupported entries.
These disclosures drove the price of Interface shares down sharply.
"We're focused on investors' losses and determining whether Interface engaged in illegal earnings smoothing," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Interface investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Interface 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 TILE@hbsslaw.com.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65120