SAN FRANCISCO, Nov. 18, 2019 /PRNewswire/ -- Hagens Berman urges Armstrong Flooring, Inc. (NYSE: AFI) investors who have suffered significant losses to submit their losses now to learn if they qualify to recover compensable damages. A securities fraud class action was recently filed against the company and senior executives and Armstrong Flooring investors may have valuable claims.
Armstrong Flooring (AFI) Securities Class Action:
The complaint alleges that Defendants engaged in fraudulent accounting and misstated its financial results.
According to the complaint, Defendants concealed that the company engaged in channel stuffing to artificially boost sales and falsely certified that its internal controls over inventory levels were effective.
The complaint alleges that investors began to learn the truth a few months after CEO Donald Maier's abrupt May 2, 2019 departure when, on November 5, 2019, Armstrong Flooring stunned analysts with disappointing Q3 2019 financial results and slashed FY 2019 guidance. Senior management blamed the poor results and projections on volume being below expectations due to further inventory reductions in the distribution channel.
This news sent the price of Armstrong shares plummeting $2.90 lower, or down about 44% that day.
If you invested in Armstrong Flooring between Mar. 6, 2018 and Nov. 4, 2019 (the "Class Period") and suffered significant losses, you may qualify to be a lead plaintiff – one who selects and oversees the attorneys prosecuting the case. Contact Hagens Berman immediately for more information about the case and being a lead plaintiff.
"We're focused on recovering investors' substantial losses and holding Armstrong Flooring accountable for its alleged channel stuffing scheme," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Armstrong Flooring and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Armstrong Flooring should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email [email protected].
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Reed Kathrein, 510-725-3000
SOURCE Hagens Berman Sobol Shapiro LLP