SAN DIEGO, Nov. 18, 2013 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of Tile Shop Hldgs, Inc. (TTS) common stock over alleged violations of Federal Securities Laws by Tile Shop Hldgs, Inc. in connection with certain allegedly false and misleading statements made between August 22, 2012 and November 13, 2013
If you purchased a significant amount of shares of Tile Shop Hldgs, Inc. (TTS) between August 22, 2012 and November 13, 2013, and / or if you purchased TTS shares in 2012 or earlier and currently hold any of those shares, you have certain options and you should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants failed to disclose that one of its largest suppliers, Beijing Pingxiu, is an undisclosed related company secretly controlled by Fumitake Nishi, the brother-in-law of the Company's CEO and a Tile Shop Hldgs employee.
On November 14, 2013, a report was published that alleged that Tile Shop Hldgs, Inc. has greatly exaggerated its true financial performance, that Tile Shop Hldgs, Inc. failed to disclose Beijing Pingxiu as a material related party supplier, that Tile Shop Hldgs, Inc. uses Beijing Pingxiu to overstate inventories, understate cost of sales and overstate gross profits, that Tile Shop Hldgs, Inc. purchases goods from Beijing Pingxiu at or near cost to allow Tile Shop Hldgs, Inc. to achieve an artificial cost advantage, and that Tile Shop Hldgs, Inc. overstates earnings.
Shares of Tile Shop Hldgs, Inc. (TTS) declined from declined from $21.34 per share on November 13, 2013, to as low as $10.28 per share during November 15, 2013.
The plaintiff seeks to recover damages on behalf of all purchasers of Tile Shop Hldgs, Inc. common stock between August 22, 2012 and November 13, 2013
Those who purchased shares of Tile Shop Hldgs, Inc. have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.