Mohawk Industries, Inc.
Lead Plaintiff Deadline: 03/09/2020
SUMMARY OF CASE:
A securities class action has been filed against Mohawk Industries, Inc. (MHK) on behalf of all persons or entities that purchased shares of Mohawk’s common stock between April 28, 2017 through July 25, 2019. This case has been filed in the USDC – N.D.GA.
The Complaint alleges that Throughout the Class Period, Defendants continued making false and misleading statements about the Company’s sales growth and demand for its Conventional Flooring Products. Despite the Company’s accounts receivable and inventory levels increasing during the Class Period, Defendants assuaged investor concerns by misleading them to believe that those increases were the result of external factors like rising raw material costs and inflation. But in reality, Mohawk was engaging in channel-stuffing to artificially inflate its sales and revenues. Defendants failed to disclose that Mohawk was stuffing its distribution channels with Conventional Flooring Products, which made the Company’s sales growth and financial performance appear far better than they were. As a result of these misrepresentations, shares of Mohawk’s common stock traded at artificially inflated prices during the Class Period.