Tile Shop Holdings Inc (NASDAQ: TTS) Investor Securities Class Action Lawsuit 11/15/2013

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Company Name(s): 
Tile Shop Holdings
Case Name: 
Tile Shop Holdings Shareholder Class Action Lawsuit 11/15/2013
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: TTS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/15/2013
Class Period Begin: 
08/22/2012
Class Period End: 
01/28/2014
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
01/14/2014
Date Settled: 
01/19/2017
Settlement Amount: 
$9,500,000
Deadline to Participate in Settlement: 
05/03/2017
Summary: 

January 19, 2017 - The court preliminarily approved the settlement.

January 13, 2017 - Parties filed a stipulation of settlement.

March 4, 2015 - The court granted in part and denied in part the defendants' motions to dismiss.

July 25, 2014 - Defendants filed a motion to dismiss.

May 23, 2014 - The lead plaintiffs filed an an amended consolidated complaint on behalf of investors who purchased Tile Shop Holdings Inc (NASDAQ: TTS) common shares between August 22, 2012 and January 28, 2014. The lead plaintiffs allege that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between August 22, 2012 and January 28, 2014

March 13, 2014 - The case was transferred to the U.S. District Court for the District of Minnesota.

February 13, 2014 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

January 14, 2014 - Lead plaintiff motions were filed.

November 20, 2013 - Another investor filed a complaint.

November 15, 2013 - An investor in shares of Tile Shop Holdings Inc (NASDAQ: TTS) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Tile Shop Holdings Inc in connection with certain allegedly false and misleading statements made between August 22, 2012 and November 13, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Tile Shop Holdings Inc (NASDAQ: TTS) between August 22, 2012 and November 13, 2013, that Tile Shop Holdings Inc and certain of its officers and directors violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges Tile Shop Holdings Inc 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 Holdings Inc employee.
Shares of Tile Shop Holdings Inc (NASDAQ: TTS) grew from under $17 per share in early 2013 to as high as over $30 in July, respectively almost $30 per share in September 2013. Since then NASDAQ: TSS shares declined to under $24 in late October 2013.

On October 30, 2013 Tile Shop Holdings Inc announced results for its third quarter ended September 30, 2013.

Shares of Tile Shop Holdings 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 Holdings Inc has greatly exaggerated its true financial performance, that Tile Shop Holdings Inc failed to disclose Beijing Pingxiu as a material related party supplier, that Tile Shop Holdings Inc uses Beijing Pingxiu to overstate inventories, understate cost of sales and overstate gross profits, that Tile Shop Holdings Inc purchases goods from Beijing Pingxiu at or near cost to allow Tile Shop Holdings Inc to achieve an artificial cost advantage, and that Tile Shop Holdings Inc overstates earnings.

Shares of Tile Shop Holdings Inc (NASDAQ: TTS) declined from declined from $21.34 per share on November 13, 2013, to $10.28 per share on November 15, 2013.