NEW YORK, Aug. 30, 2013 /PRNewswire/ -- Pomerantz
Grossman Hufford Dahlstrom & Gross LLP has filed a class action
lawsuit against Furniture Brands International, Inc. ("FBN"
or the "Company") (OTC Markets: FBNI) and certain of its
officers. The class action, filed in United States District
Court, Eastern District of Missouri, and docketed under 13-cv-01703, is
on behalf of a class consisting of all persons or entities who
purchased or otherwise acquired securities of FBN between
February 13, 2013 and August 5, 2013 both dates inclusive (the "Class
Period"). This class action seeks to recover damages against the
Company and certain of its officers and directors as a result of
alleged violations of the federal securities laws pursuant to
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased FBN securities during the
Class Period,
you have until October 15, 2013 to
ask the Court to appoint you as Lead Plaintiff for the class.
A copy of the Complaint can be obtained at www.pomerantzlaw.com.
To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com
or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who
inquire by e-mail are encouraged to include their mailing address,
telephone number, and number of shares purchased.
FBN manufactures and distributes residential furniture. The
Company's products include stationary upholstery products,
occasional furniture, recliners and sleep sofas. The Company's
trade names include, among others, Thomasville, Broyhill, Lane, and Drexel Heritage.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business and operations. Specifically,
Defendants made false and misleading statements and/or failed to
disclose that: (a) the Company was experiencing weaknesses in its
wholesale business; (b) the Company's trade names were being
carried at inflated values that would require material impairments;
(c) the Company was experiencing severe liquidity issues; (d) and
based upon the above, the Defendants lacked a reasonable basis for
their positive statements about the Company during the Class
Period.
On August 6, 2013, prior to the
open of the financial markets, the Company issued a press release,
reporting the Company's second quarter financial results for the
quarter ending June 29, 2013. The
Company disclosed a material impairment and that it would need to
address liquidity challenges and improve business performance by
implementing strategic initiatives to achieve cost reductions,
pursuing asset sales and working with its lenders to potentially
modify its credit facilities. On this news, shares of FBN
declined $0.84 per share, more than
38%, to close at $1.37 per share on
August 6, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz Grossman Hufford Dahlstrom
& Gross LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz Grossman Hufford
Dahlstrom & Gross LLP