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Shareholder Alert: Robbins LLP Announces It Is Investigating Mohawk Industries, Inc. (MHK) for Misleading Shareholders

Shareholder rights law firm Robbins LLP announces that it is investigating Mohawk Industries, Inc. (NYSE: MHK) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. Mohawk Industries designs, manufactures, sources, distributes, and markets flooring products for residential and commercial spaces worldwide.

If you suffered a loss as a result of Mohawk's misconduct, click here.

Mohawk Industries, Inc. (MHK) Fails to Meet Company Guidance

Beginning in April 2017, Mohawk touted its purported "growing demand" for its conventional flooring products and continued to highlight its sales growth throughout the relevant period. Then, on July 25, 2019, after repeatedly reporting financial results that missed analysts' estimates and the Company's guidance range, Mohawk revealed sales in its Flooring NA segment were down 7% because "lower demand" for certain conventional flooring products had created excess inventory that impacted Mohawk's sales and margins. On this news, Mohawk's stock dropped $27.76, nearly 18%, to close at $128.84. The stock has yet to recover. It appears that Mohawk had been channel stuffing by causing its distributors to take on surpluses of Conventional Flooring Products that were greater than demand to make Mohawk's sales growth and financial performance appear better than they were.

Mohawk Industries, Inc. (MHK) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
lkandinov@robbinsllp.com
Shareholder Information Form

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View source version on businesswire.com: https://www.businesswire.com/news/home/20200701005802/en/

Contacts

Leo Kandinov
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
lkandinov@robbinsllp.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com