SAN DIEGO & SMYRNA, Ga.–(BUSINESS WIRE)–$FND #ClassAction–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, [email protected],
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
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