An investigation for investors in NASDAQ:TTS shares was announced over potential breaches of fiduciary duties by certain directors at Tile Shop Holdings.
Investors who purchased shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) and currently hold any of those NASDAQ:TTS 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 Tile Shop Holdings directors breached their fiduciary duties and caused damage to the company and its shareholders.
On October 30, 2013 Tile Shop Hldgs, Inc. announced results for its third quarter ended September 30, 2013.
Shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) declined from $24.33 per share on October 30, 2013, to $20.905 per share on October 31, 2013.
Then on November 14, 2013, a report was published that alleged that Tile Shop Hldgs, Inc. has greatly exaggerated its true financial performance, that Tile Shop Hldgs, Inc. failed to disclose Beijing Pingxiu as a material related party supplier, that Tile Shop Hldgs, Inc. uses Beijing Pingxiu to overstate inventories, understate cost of sales and overstate gross profits, that Tile Shop Hldgs, Inc. purchases goods from Beijing Pingxiu at or near cost to allow Tile Shop Hldgs, Inc. to achieve an artificial cost advantage, and that Tile Shop Hldgs, Inc. overstates earnings.
On November 14, 2013, a lawsuit was filed against Tile Shop Holdings over alleged securities laws violations. The plaintiff alleges Tile Shop Hldgs failed to disclose that one of its largest suppliers, Beijing Pingxiu (“BP”), is an undisclosed related company secretly controlled by Fumitake Nishi, the brother-in-law of the Company’s CEO and a Tile Shop Hldgs employee.
Those who purchased NASDAQ:TTS shares 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