Robbins LLP: Lumber Liquidators Holdings, Inc. (LL) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Lumber Liquidators Holdings, Inc. (NYSE: LL) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of Virginia. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between November 25, 2013 and July 9, 2014. Lumber Liquidators is a specialty retailer of hardwood flooring and hardwood flooring enhancements and accessories.
Lumber Liquidators Is Accused of Overstating Ability to Meet Quality Standards
According to the complaint, shares of Lumber Liquidators dropped over 21% to close at $55.25 on July 10, 2014, after the company issued a press release announcing that it would miss its estimated second quarter revenues by more than 13% and its earnings by 30%. According to the press release cited to in the complaint, the company’s poor performance resulted from “lower than planned inventory levels,” which contradicted the company’s prior assurances that it could meet demand for its wood flooring products by adding or removing vendors as needed.
The complaint further alleges that Lumber Liquidators made false and/or misleading statements regarding the inability of a significant number of mills to satisfy the company’s quality assurance requirements. As a result, the company would be required to discount alternative merchandise, eroding its profit margins.
Lumber Liquidators Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.