If you purchased shares of Tile Shop and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/tts. You may also email Mr. Maniskas at firstname.lastname@example.org.
The investigation is related to recent allegations that Tile Shop that the Company may have issued materially misleading business information to the investing public, namely, that its uses an undisclosed related party to overstate earnings.
On November 14, 2013, Gotham City Research LLC issued a report asserting that Tile Shop has greatly exaggerated its true financial performance. The report states, among others things, that: the Company's largest supplier, Beijing Pingxiu ("BP"), is an undisclosed related company secretly controlled by Fumitake Nishi, the brother-in-law of the Company's CEO and a Tile Shop employee; Tile Shop uses BP to overstate inventories, understate cost of sales and overstate gross profits; BP sells goods to the Tile Shop at or near cost to allow Tile Shop to achieve an artificial cost advantage; and Tile Shop's 2013 LTM earnings are overstated by over 200%.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP