NEW YORK, Nov. 20, 2019 /PRNewswire/ -- Bernstein
Liebhard, a nationally acclaimed investor rights law firm,
announces that a securities class action has been filed on behalf
of investors that purchased or acquired the securities of Armstrong
Flooring, Inc. ("Armstrong Flooring" or the "Company") (NYSE: AFI)
between March 6, 2018 and
November 4, 2019, inclusive (the
"Class Period"). The lawsuit filed in the
United States District Court for the Central District
of California alleges violations of the Securities Exchange
Act of 1934.
If you purchased Armstrong Flooring securities, and/or would
like to discuss your legal rights and options please visit
Armstrong Flooring Shareholder Class Action or contact Matthew E. Guarnero toll free at (877)
779-1414 or MGuarnero@bernlieb.com.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company's business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that the Company had engaged in channel stuffing to
artificially boost sales; (2) that the Company's internal control
over inventory levels was not effective; and (3) that, as a result
of the foregoing, Defendants' positive statements about the
Company's business, operations, and prospects, were materially
misleading and/or lacked a reasonable basis.
On May 3, 2019, Armstrong
Flooring's Chief Executive Officer abruptly resigned.
On this news, the Company's stock price fell $1.75, nearly 12%, to close at $13.14 per share on May 3,
2019 on unusually heavy trading volume.
Then, on November 5, 2019, before
the market opened, Armstrong Flooring reported $165.6 million net sales for third quarter 2019,
a nearly 21% decline year-over-year, and a net loss of $31.4 million. The Company also cut its full year
2019 guidance for adjusted EBITDA to a range of $20 million to $25
million, from prior guidance range of $46 million to $54
million, citing "larger distributor movements on inventory"
than anticipated.
On this news, the Company's stock price fell $2.90 per share, or nearly 44%, to close at
$3.70 per share on November 5, 2019, thereby injuring investors
further.
If you purchased Armstrong Flooring securities, and/or would
like to discuss your legal rights and options please visit
https://www.bernlieb.com/cases/armstrongflooringinc-afi-shareholder-class-action-lawsuit-stock-fraud-221/apply/
or contact Matthew E. Guarnero toll
free at (877) 779-1414 or MGuarnero@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court
no later than January 14, 2020. A
lead plaintiff is a representative party acting on behalf of other
class members in directing the litigation. Your ability to share in
any recovery doesn't require that you serve as lead plaintiff. If
you choose to take no action, you may remain an absent class
member.
Since 1993, Bernstein Liebhard LLP has recovered over
$3.5 billion for its clients. In
addition to representing individual investors, the Firm has been
retained by some of the largest public and private pension funds in
the country to monitor their assets and pursue litigation on their
behalf. As a result of its success litigating hundreds of lawsuits
and class actions, the Firm has been named to The National Law
Journal's "Plaintiffs' Hot List" thirteen times and listed in The
Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Matthew E. Guarnero
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
MGuarnero@bernlieb.com
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SOURCE Bernstein Liebhard LLP