Wites Law Firm announces their investigation of Tile Shop Holdings, Inc. (“Tile Shop” or the “Company) (Nasdaq: TTS). On November 14, 2013, shares of Tile Shop declined after short-seller Gotham City Research LLC said in a report that the Company, a specialty retailer of manufactured and natural stone tile, used improper accounting to inflate earnings. Following this news, shares of Tile Shop stock declined by $8.26 per share, ornearly39%, to close at $12.95 per share on November 14, 2013, on unusually heavy volume. The Wites Law Firmseeks to uncover additional information about this substantial loss of shareholder value, and potential investor claims against Tile Shop.
A class action complaint has been filed on behalf of all persons who purchased Tile Shop common stock and call options and sold Tile Shop put options between August 22, 2012 and November 13, 2013, inclusive (the “Class Period”) in the United States District Court for the Southern District of New York. The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and financial performance. Specifically, the action alleges that throughout the Class Period Tile Shop and certain executives made a series of false and misleading statements and failed to disclose that the Company’s largest supplier, Beijing Pingxiu (“BP”), is an undisclosed related party and the Company used BP to engage in improper accounting practices to drastically overstate its earnings by as much as 200%.
If you are an investor who purchased Tile Shop stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. The deadline for lead plaintiff is January 14, 2014. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites Law Firm by email atinfo@witeslaw.com or toll-free at 1 (866) 277-8631.
Wites Law Firm is a law firm with offices in Oakland, California and Lighthouse Point, Florida, with expertise in the representation of investors in securities fraud and investor litigation claims. You may visit its website at www.wklawyers.com.
