BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of purchasers of the securities of Lumber Liquidators Holdings, Inc. (“Lumber Liquidators” or the “Company”) (NYSE:LL) between November 25, 2013 and July 9, 2014, inclusive (the “Class Period”). Lumber Liquidators, together with its subsidiaries, operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories.
The Complaint alleges that the Company issued false and misleading statements that misrepresented that quality control requirements implemented by the Company would neither affect its extensive and diverse supplier network nor impact its revenue, earnings or margin, and misrepresented that the Company would continue to experience revenue and earnings growth and margin expansion.
On July 9, 2014, Lumber Liquidators lowered its previous 2014 financial guidance and disclosed that “lower than planned inventory levels reduced our ability to convert customer interest into invoiced sales,” which the Company attributed to “production delays in meeting our open orders as we continued to enhance our quality assurance requirements.” In addition, the Company announced an expected contraction in second quarter gross margin, primarily the result of greater retail discounting. Following this news, Lumber Liquidators stock dropped more than 21%, or $15.17 per share, to close at $55.25 per share on July 10, 2014, on heavy volume.
If you are a member of the Class described above, you have until November 17, 2014, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.