Mohawk Industries, Inc. (NYSE: MHK) Investor Securities Class Action Lawsuit 01/09/2020

If you purchased a significant amount of shares of Mohawk Industries, Inc. (NYSE: MHK) between April 28, 2017 and July 25, 2019, and / or if you purchased any NYSE: MHK shares prior to April 2017 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: March 3, 2020. NYSE: MHK investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Mohawk Industries
Case Name: 
Mohawk Industries Shareholder Class Action Lawsuit 01/09/2020
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: MHK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/09/2020
Class Period Begin: 
04/28/2017
Class Period End: 
07/25/2019
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
03/03/2020
Summary: 

An investor inshares of Mohawk Industries, Inc. (NYSE: MHK) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Mohawk Industries, Inc. in connection with certain allegedly false and misleading statements made between April 28, 2017 and July 25, 2019.

Calhoun, GA based Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide.

On July 25, 2018, after the market closed, Mohawk Industries, Inc announced disappointing financial results for second quarter 2018, disclosing that Mohawk “reduced [its] production volumes more than [the Company] had thought” and that it “came into the year with higher inventories than [it] wanted to have.”
On this news, the Company’s share price fell $38.06, or over 17%, to close at $179.31 per share on July 26, 2018, thereby injuring investors.
Then, on October 25, 2018, after the market closed, Mohawk Industries, Inc reported third quarter 2018 financial results that fell below the Company’s guidance, stating that “[t]o improve [its] inventory turns, [Mohawk was] presently manufacturing fewer units than [it was] selling, which is negatively impacting [its] costs.”
Then, on July 25, 2019, after the market closed, Mohawk Industries, Inc reported that sales in its Flooring NA segment declined 7% year-over-year and that there was “big buildup in inventory in ceramic.”

On February 7, 2019, Mohawk Industries, Inc. reported that its annual Total Revenue rose from over $9.49 billion in 2017 to over $9.98 billion in 2018 and that its Net Income declined from $971.63 million in 2017 to $861.7 million in 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Mohawk Industries, Inc. (NYSE: MHK) common shares between April 28, 2017 and July 25, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 28, 2017 and July 25, 2019, the Defendants failed to disclose to investors that the Company engaged in deceptive and unsustainable sales practices to mask declining customer demand for its Conventional Flooring products, that Mohawk’s increasing inventories was not the result of increasing inflation or the Company’s backward integration, but instead the result of the Company deliberately stuffing the channels with Conventional Flooring Products to boost sales, and that as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.