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Sleep Number Corporation


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Minnesota on behalf of those who acquired Sleep Number Corporation (“Sleep Number” or the “Company”) (NASDAQ: SNBR) common stock from February 18, 2021 through July 20, 2021, inclusive (the “Class Period”). Investors have until February 14, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Sleep Number, together with its subsidiaries, provides sleep solutions and services in the United States. The Company is best known for its Sleep Number 360® smart beds which employ the Company’s SleepIQ® technology to automatically adjust the mattress’s firmness, comfort and support as one sleeps. 
 
On April 21, 2021, Sleep Number issued a press release announcing its financial results for its first fiscal quarter ended March 31, 2021. The release revealed that Sleep Number had missed consensus sales estimates for the quarter as a result of significant supply chain disruptions. Specifically, the release stated that Sleep Number had “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, the price of Sleep Number stock declined by $14.80 per share, or approximately 11.85%, from $124.93 per share to close at $110.13 per share on April 22, 2021.
 
On July 20, 2021, Sleep Number issued a press release announcing its financial results for its second fiscal quarter ended June 30, 2021. The release revealed that Sleep Number had missed consensus estimates on the top and bottom line for the quarter and again blamed the disappointing results in significant part on “near-term supply constraints” and component shortages. On this news, the price of Sleep Number stock declined by $14.46 per share, or approximately 12.88%, from $112.24 per share to close at $97.78 per share on July 21, 2021.
 
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose 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 Number’s production of its primary mattress products, Sleep Number’s ability to timely fulfill customer orders had been materially impaired; (iv) thus, Sleep Number was unable to meet surging customer demand for Sleep Number’s products; and (v) 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 Number’s financial results.
 

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