SAN DIEGO & SMYRNA, Ga.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Floor & Decor Holdings, Inc. (NYSE: FND) filed a complaint against the company for alleged violations of the Securities Exchange Act of 1934 from May 23, 2018 through August 1, 2018. Floor & Decor is a multi-channel specialty retailer of hard surface flooring and related accessories, with warehouse-format stores across 21 states.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/floor-decor-holdings-inc/
Floor & Decor Accused of Inflating Secondary Offering Price
According to the complaint, since its IPO, Floor & Decor reported strong sales growth and product demand from its customers. In May 2018, Floor & Decor issued a press release announcing that its financial results beat expectations, and, as a result, was increasing its financial projections for the remainder of the fiscal year. On the same day, Floor & Decor held a conference call reiterating the basis for the increase in its financial guidance as strong demand. Later that month, Floor & Decor filed documents with the SEC for a secondary offering and through related filings assured investors of its current financial condition. However, it failed to disclose that prior to the offering, Floor & Decor had already begun to experience declining sales trends that would ultimately result in the reduction of its fiscal 2018 sales and adjusted EPS guidance. By concealing these facts, the secondary offering raised more than $400 million for the "Selling Stockholders." Insiders unloaded more than 10.3 million shares for proceeds of more than $466 million. In August 2018, Floor & Decor sharply reduced its financial guidance due to declining sales trends. As a result of these disclosures, Floor & Decor's stock price declined more than 20% to close at $37.50 per share on August 3, 2018, and has yet to recover.
Floor & Decor Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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