SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a securities class action lawsuit has been filed in the Central District of California on behalf of purchasers of Armstrong Flooring, Inc. (NYSE:AFI) securities between March 6, 2018 and November 4, 2019 (the “Class Period”). The case is captioned Chupa v. Armstrong Flooring, Inc., No. 19-cv-09840, and is assigned to Judge Christina A. Snyder. The Armstrong Flooring securities class action lawsuit charges Armstrong Flooring and certain of its current and former officers with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Armstrong Flooring securities during the Class Period to seek appointment as lead plaintiff in the Armstrong Flooring securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Armstrong Flooring securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Armstrong Flooring securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Armstrong Flooring securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Armstrong Flooring securities class action lawsuit or have questions concerning your rights regarding the Armstrong Flooring securities class action lawsuit, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Armstrong Flooring securities class action lawsuit must be filed with the court no later than January 14, 2020.
Armstrong Flooring manufactures and sells flooring products primarily used in the construction and renovation of commercial, residential, and institutional buildings. The Armstrong Flooring securities class action lawsuit alleges that throughout the Class Period, defendants failed to disclose that Armstrong Flooring’s internal control over inventory levels was not effective and that Armstrong Flooring had engaged in channel stuffing to artificially boost sales. As a result of this information being withheld from the market, Armstrong Flooring securities traded at artificially inflated prices during the Class Period, with Armstrong Flooring’s stock price reaching a high of more than $20 per share.
On May 3, 2019, Armstrong Flooring announced that, “pursuant to a mutual agreement between the Company and Donald R. Maier [Armstrong Flooring’s CEO], Maier’s employment with the Company [had] ceased and he [had] resigned as a member of the Board of Directors.” On this news, Armstrong Flooring’s stock price fell nearly 12%.
Then, on November 5, 2019, before the market opened, Armstrong Flooring reported $165.6 million in net sales for the third quarter of 2019, a nearly 21% decline year over year, and a net loss of $31.4 million. Armstrong Flooring also cut its full year 2019 guidance for adjusted EBITDA to a range of $20 million to $25 million from its prior guidance range of $46 million to $54 million, citing “larger distributor movements on inventory” than anticipated. On this news, Armstrong Flooring’s stock price fell nearly 44%.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.