The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Mohawk Industries, Inc. (NYSE: MHK) who purchased shares between April 28, 2017 and July 25, 2019. The action, which was filed in the United States District Court for the Northern District of Georgia, alleges that the Company violated federal securities laws.
In particular, the Mohawk Industries lawsuit alleges that, when faced with slowing demand for its conventional flooring products, the Company engaged in a scheme to inflate its revenues and earnings by booking fictitious sales of those products. This practice is known as channel stuffing and was used by Mohawk to hide severely declining demand for conventional flooring products. Throughout the Class Period, Defendants made false and/or misleading statements about Mohawk’s sales growth and the demand for the Company’s conventional flooring products. Defendants also reassured investors about Mohawk’s increasing accounts receivable and inventory levels by falsely attributing those increases to external factors like rising raw material costs and inflation. As a result of these misrepresentations, shares of Mohawk’s common stock traded at artificially inflated prices during the Class Period.
Shareholders have until March 3, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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