The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Armstrong Flooring...
January 09 2020 - 7:29PM
Business Wire
The Law Offices of Frank R. Cruz reminds investors of the
upcoming January 14, 2020 deadline to file a lead plaintiff
motion in the class action filed on behalf of Armstrong Flooring,
Inc. (“Armstrong” or the “Company”) (NYSE: AFI) investors who
purchased securities between March 6, 2018 and November 4,
2019, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to
participate.
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, thereby injuring
investors.
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.
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.
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If you purchased or otherwise acquired Armstrong securities
during the Class Period, you may move the Court no later than
January 14, 2020 to request appointment as lead plaintiff in
this putative class action lawsuit. To be a member of the class
action you need not take any action at this time; you may retain
counsel of your choice or take no action and remain an absent
member of the class action. If you wish to learn more about this
class action, or if you have any questions concerning this
announcement or your rights or interests with respect to the
pending class action lawsuit, please contact Frank R. Cruz, of The
Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100,
Los Angeles, California 90067 at 310-914-5007, by email to
info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200109005877/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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