Mohawk Industries, Inc.
The law firm of Kirby Mcinerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Georgia on behalf of those who acquired Mohawk Industries, Inc. (“Mohawk” or the “Company”) (NYSE: MHK) securities during the period from April 28, 2017 through July 25, 2019 (the “Class Period”). Investors have until March 3, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company misled investors regarding Mohawk’s sales growth and the demand for the Company’s conventional flooring products Defendants also reassured investors about the Company’s increasing accounts receivable and inventory levels during the Class Period by falsely attributing those increases to external factors like rising raw material costs and inflation.
On July 25, 2018, Mohawk announced disappointing financial results for the second quarter of 2018, with earnings that were well below both Wall Street estimates and the Company’s previous guidance range. On this news, the price of Mohawk shares fell $38.06, or 17.5%, to close at $179.31 per share on July 26, 2018.
On October 25, 2018, Mohawk reported sales and earnings for the third quarter of 2018 that substantially missed analysts’ estimates and fell well below the Company’s previous guidance range, with sales growth in all segments falling below estimates. On this news, the price of Mohawk shares fell $36.04, or 23.9%, to close at $115.03 per share on October 26, 2018.
On July 25, 2019, Mohawk revealed that sales in its Flooring NA segment were down 7% year-over-year, and that it was again reducing production to control inventory levels and match its supply with customer demand. On this news, the price of Mohawk shares fell $27.52, or 17.6%, to close at $128.84 per share on July 26, 2019.
If you acquired Mohawk securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.