SAN DIEGO & ATLANTA--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Interface, Inc. (NASDAQ: TILE) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities & Exchange Act of 1934 between March 2, 2018 and September 28, 2020. Interface designs, produces and sells modular carpet products In the Americas, Europe and Asia-Pacific.
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Interface, Inc. (TILE) Misled Shareholders About its Internal Controls Over Financial Reporting
According to the complaint, throughout the relevant period, Interface failed to disclose that it had inadequate disclosure controls and procedures and internal controls over financial reporting.
On April 24, 2019, Interface filed a report on Form 8-K with the SEC disclosing that it had "received a letter in November 2017 from the [SEC] requesting that the Company voluntarily provide information and documents in connection with an investigation into the Company's historical quarterly [EPS] calculations and rounding practices during the period 2014-2017"; that '[t]he Company subsequently received subpoenas from the SEC in February 2018, July 2018 and April 2019 requesting additional documents and information"; and that "[i]n the fourth quarter of 2018, the Company conducted at the SEC's request an internal investigation into these and other related issues for seven quarters in 2015, 2016 and 2017." The SEC announced the conclusion of its investigation into Interface's historical EPS calculations and rounding practices on September 28, 2020. The SEC's enforcement order disclosed how "Interface employees caused Interface to produce documents in response to Commission investigative requests that were suggestive of contemporaneous support for journal entries that, in truth, did not exist at the time the entries were recorded," and had modified certain documents after the SEC's investigation began. Interface agreed to pay a $5 million fine to resolve the matter and was ordered to cease and desist violating the federal securities laws. On this news, the Company's stock fell 3.13% over two trading sessions to close at $6.18 on September 29, 2020.
If you purchased Interface, Inc. (TILE) securities between March 2, 2018 and September 28, 2020, you have until January 11, 2021, to ask the court to appoint you lead plaintiff for the class.
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