NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Tempur Sealy International, Inc. (NYSE: TPX).
Throughout the second half of 2016, the Company made statements misrepresenting the true increasingly-hostile nature of relations with its largest purchaser, Mattress Firm, omitting and/or downplaying the likely material adverse effect of the disagreements on the Company’s operating results, which resulted in the price of the Company’s stock being artificially inflated. During this time the Company undertook a wasteful repurchase of its stock at an inflated price and further, a Company executive received significant proceeds from insider sales of the Company’s stock, which resulted in a wasteful over payment by the Company of at least $56 million. On January 30, 2017, the true nature of the Company’s deteriorating relationship with Mattress Firm was revealed when it announced that it was terminating its business with Mattress Firm due to “significant economic concessions” demanded by its former largest customer.
Thereafter, Tempur Sealy and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws.
KSF’s investigation is focusing on whether Tempur Sealy’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Tempur Sealy shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org).
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.