Securities & Investment Fraud

Mohawk Industries, Inc., Securities Class Litigation

Introduction

Class action litigation has been filed on behalf of investors who purchased or otherwise acquired the common stock of Mohawk Industries, Inc. (“Mohawk” or the “Company”) (NYSE: MHK).  If you purchased or otherwise acquired Mohawk common stock between April 28, 2017 and July 25, 2019, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than March 3, 2020.

You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action.  Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market.  We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.

Mohawk investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.

Background on the Mohawk Industries, Inc., Securities Class Litigation

Mohawk, incorporated and headquartered in Calhoun, Georgia, is a global manufacturer of flooring products, including ceramic and porcelain tile and natural stone products, carpets, rugs, laminate, hardwood flooring, sheet vinyl, and luxury vinyl tile, or LVT.

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that Mohawk engaged in a scheme to inflate its revenues and earnings by stuffing the channel with its conventional flooring products and booking fictitious sales of those products. Defendants made false and misleading statements about Mohawk’s sales growth and the demand for its conventional flooring products. Defendants also reassured investors about Mohawk’s increasing accounts receivable and inventory levels by falsely attributing those increases to market factors including rising raw material costs and inflation.

The truth about Defendants’ fraudulent scheme was revealed beginning on July 25, 2018, when the Company reported disappointing financial results well below its previous guidance and Wall Street estimates. The Company also announced that it would be reducing production, which indicated that its sales channels were stuffed with more product than it was able to sell. Following this news, Mohawk’s stock price declined $38.06 per share, or 17%, from its closing price on July 25, 2018 to close at $179.31 on July 26, 2018.

On October 25, 2018, Mohawk reported its financial results for the third quarter of 2018 that was well below analysts’ estimates.  Mohawk executives attributed the disappointing results, in part, to further manufacturing reductions that were required to control inventory buildup. On this news, the Company’s stock price fell $36.03 per share, or 23.9%, from its closing price on October 25, 2018 to close at $115.03 per share on October 26, 2018.

On July 26, 2019, Mohawk reported that it was again reducing production to control inventory levels so that supply matched customer demand. Following this news, the price of Mohawk stock fell nearly 18% to close at $128.84 on July 26, 2019.

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II. TRANSACTIONS IN MOHAWK COMMON STOCK

Number of shares of Mohawk stock held immediately before the start of Class Period on April 28, 2017:

From April 28, 2017 and July 25, 2019, inclusive, I made the following transactions in Mohawk common stock:

PURCHASES

Date
No. of Shares
Price

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SALES

Date
No. of Shares
Price

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During the 90 days after July 25, 2019, I made the following transactions in Mohawk common stock:

PURCHASES

Date
No. of Shares
Price

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SALES

Date
No. of Shares
Price

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About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years.  In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.”  Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.”  In late 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”