The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Lumber Liquidators Holdings Inc (NYSE:LL) shares is ongoing over potential breaches of fiduciary duties by certain officers and directors at Lumber Liquidators Holdings.
Investors who purchased shares of Lumber Liquidators Holdings Inc (NYSE:LL) and currently hold any of those NYSE:LL shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain Lumber Liquidators Holdings officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Lumber Liquidators Holdings Inc reported that its Total Revenue rose from $620.28 million in 2010 to over $1 billion in 2013 and that its respective Net Income increased from $26.27 million to $77.39 million. Shares of Lumber Liquidators Holdings Inc (NYSE:LL) rose from $14.62 per share in August 2011 to as high as $119.44 per share in November 2013. Since then NYSE:LL shares declined to $69.90 per share on July 9, 2014.
Then on July 9, 2014, Lumber Liquidators Holdings Inc provided its second quarter 2014 business update and revised its outlook for the fully year 2014. Shares of Lumber Liquidators Holdings Inc dropped from $69.90 per share on July 9, 2014, to $54.31 per share during July 10, 2014, respectively $53.85 per share on July 15, 2014.
In September 2014 a lawsuit was filed against Lumber Liquidators Holdings Inc. The plaintiff claimed that the defendants allegedly misrepresented that quality control requirements implemented by Lumber Liquidators Holdings Inc would neither affect its extensive and diverse supplier network, nor impact its revenue, earnings, or margins, that Lumber Liquidators Holdings Inc allegedly continually touted that it would continue to experience revenue and earnings growth and margin expansion, and that as a result of these alleged misrepresentations, Lumber Liquidators Holdings Inc stock traded at artificially inflated prices between November 25, 2013 and July 9, 2014.
On February 25, 2015, Lumber Liquidators Holdings Inc announced its financial results for the fourth quarter of 2014, which fell short of its previously issued guidance for net sales and earnings per diluted share. Lumber Liquidators Holdings Inc said that its annual Total Revenue rose from $1 billion in 2013 to over $1.04 billion in 2014 and that its Net Income declined from $77.40 million in 2013 to $63.37 million in 2014. Lumber Liquidators Holdings Inc also said that on September 26, 2013, sealed search warrants were executed at its corporate offices in Toano and Richmond, Virginia by the Department of Homeland Security’s Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service and that the search warrants requested information, primarily documentation, related to the importation of certain of our wood flooring products. Lumber Liquidators Holdings Inc said that since September 2013 it have been cooperating with the federal authorities, including the Department of Justice (“DOJ”), in their investigation and that in recent communications, the DOJ indicated that it is contemplating seeking criminal charges under the Lacey Act.
On March 1, 2015, a report by CBS 60-minutes alleged the U.S. retailer of hardwood flooring has installed Chinese-made laminate flooring in many American homes that contains far higher-than-accepted levels of formaldehyde, a chemical known to cause cancer.
Shares of Lumber Liquidators Holdings Inc (NYSE:LL) declined from almost $120 per share in November 2013 to as low as $27.15 per share on March 23, 2015.
On April 7, 2015, NYSE:LL shares closed at $33.55 per share.
Those who purchased shares of Lumber Liquidators Holdings Inc (NYSE:LL), have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com