NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Tempur Sealy International, Inc. (NYSE:TPX) securities between July 28, 2016 and January 27, 2017 (the “Class Period”). Investors have until May 23, 2017 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Tempur Sealy, the world’s largest bedding provider, develops, manufactures, and distributes mattresses, adjustable bases, pillows, and other sleep relaxation products. Mattress Firm Holding Corp. (“Mattress Firm”) was the Company’s largest customer and accounted for approximately 25% of Tempur Sealy’s 2015 net sales.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and failed to disclose that: (1) Mattress Firm was engaged in active negotiations to be acquired, which would likely have a material adverse effect on Tempur Sealy’s 2016 third and fourth quarter operating results; and (2) Tempur Sealy was engaged in active discussions with Mattress Firm concerning modifications to their long-term supply agreements. As a result, Defendants lacked a reasonable basis for their positive statements about Tempur Sealy’s then-current business and future financial prospects. The Complaint also alleges that Tempur Sealy allowed Company insiders to sell over $8.2 million of Tempur Sealy stock at artificially inflated prices throughout the Class Period.
On January 27, 2017, Tempur Sealy revealed that the Company would end business with Mattress Firm during the first quarter of 2017. Following this news, Tempur Sealy shares dropped $20.19 per share over a two-day period, or nearly 32%, to close at $43.00 per share on January 31, 2017.
If you purchased or otherwise acquired Tempur Sealy securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Esq. by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Tempur Sealy lawsuit, please go to www.bespc.com/tpx. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.