The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Sleep Number Corporation (SNBR) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Sleep Number Corporation (“Sleep Number” or the “Company”) (NASDAQ: SNBR) securities between February 18, 2021 and July 20, 2021, inclusive (the “Class Period”). Sleep Number investors have until February 14, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On April 21, 2021, Sleep Number released its first quarter 2021 financial results, missing consensus sales estimates as a result of supply chain disruptions due to Winter Storm Uri in February 2021. Specifically, “more than $50 million of deliveries (two weeks) shifted out of the quarter due to temporary foam supply constraints,” representing nearly 9% of the Company’s entire sales for the quarter.

On this news, Sleep Number’s stock fell $14.80, or 12%, to close at $110.13 per share on April 22, 2021, thereby injuring investors.

Then, on July 20, 2021, Sleep Number released its second quarter 2021 financial results. Once again, the results missed consensus estimates, which the Company blamed on supply constraints and component shortages.

On this news, Sleep Number’s stock fell $14.46, or 12.88%, to close at $97.78 per share on July 21, 2021, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Sleep Number had suffered a severe disruption in its supply chain for foam as a result of Winter Storm Uri; (ii) Sleep Number did not have in place the supply chain flexibility, redundancies, and fail-safes, as had been represented to investors, sufficient to offset the foam supply disruption caused by Winter Storm Uri; (iii) because foam was a necessary component for Sleep Numbers production of its primary mattress products, Sleep Numbers ability to timely fulfill customer orders had been materially impaired; (iv) thus, Sleep Number was unable to meet surging customer demand for Sleep Numbers products; and (v) that, as a result, Sleep Number had been forced to delay mattress shipments to end consumers, pushing millions of dollars worth of sales into subsequent quarters and negatively impacting Sleep Numbers financial results.

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If you purchased Sleep Number securities during the Class Period, you may move the Court no later than February 14, 2022 to ask the Court to appoint you as lead plaintiff. 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 purchased Sleep Number securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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