SAN FRANCISCO, Oct. 23, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, is investigating expanding the class period in the securities fraud class action against Lumber Liquidators Holdings, Inc. (NYSE:LL) ("Lumber Liquidators" or "the Company") to include investors who purchased through October 22, 2014 in light of newly reported developments at the company, and reminds investors of the upcoming November 17, 2014 lead plaintiff deadline.
Investors who purchased Lumber Liquidators securities between November 25, 2013 and July 9, 2014 (the "Class Period") are covered by the current complaint on file. However, investors who purchased between November 25, 2013 through October 22, 2013, when the Company again surprised investors, are encouraged to contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000, emailing LL@hbsslaw.com or visiting http://hb-securities.com/investigations/LL.
The complaint alleges that the Company violated federal securities laws by failing to disclose that quality control requirements implemented by Lumber Liquidators were negatively affecting its supplier network and its revenue, earnings, or margins, and that these problems were continuing into the most recent quarter.
On July 9, 2014, the Company lowered its previous 2014 financial guidance while disclosing that "lower than planned inventory levels reduced our ability to convert customer interest into invoiced sales." Lumber Liquidators blamed the inventory shortage on "production delays in meeting our open orders as we continued to enhance our quality assurance requirements." On this news, share prices tumbled over 21%.
Then, on October 22, 2014, the Company reported third quarter earnings of 58 cents a share, again missing analyst estimates. Revenue also missed estimates, and as a result Lumber Liquidators lowered its full-year earnings and revenue estimates. The share price took another hit, dropping another 9%, to close at $52.36.
"Management's excuses hardly appear credible, and their reassurances that inventory levels were adequate were misleading," said Mr. Kathrein. "Meanwhile, insiders profited by selling off their inflated shares."
If you suffered a loss from your investment in Lumber Liquidators securities purchased on or during the period November 25, 2013 to October 22, 2014, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has yet been certified in the above action.
Whistleblowers: Persons with non-public information regarding Lumber Liquidators should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. For more information, call Reed Kathrein at (510) 725-3000 or email LL@hbsslaw.com.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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