Johnson & Weaver, LLP Files Class Action Suit against Tempur Sealy International, Inc.
SAN DIEGO, March 24, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP announced today that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Tempur Sealy International, Inc. ("Tempur Sealy" or the "Company") (NYSE: TPX) common stock during the period between July 28, 2016 and January 27, 2017, inclusive (the "Class Period"). Defendants are Tempur Sealy, Scott L. Thompson, and Barry A. Hytinen.
If you wish to serve as a lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If you email, please include your phone number. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.johnsonandweaver.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint charges Tempur Sealy and certain of its officers with violations of the Securities Exchange Act of 1934. Tempur Sealy develops, manufactures, and distributes bedding products worldwide.
Specifically, the complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Tempur Sealy's business and prospects, including, among other things: (i) that prior to and during the Class Period, Mattress Firm Holding Corp. ("Mattress Firm"), the Company's largest customer which accounted for approximately 25% of the Tempur Sealy's 2015 net sales, had been engaged in active negotiations to be acquired and that any such acquisition was reasonably likely to have a material adverse effect in Tempur Sealy's 2016 third and fourth quarter operating results; (ii) that during the Class Period, Tempur Sealy was engaged in active discussions with Mattress Firm concerning modifications to their long-term supply agreements; (iii) that Mattress Firm had been seeking significant economic concessions from Tempur Sealy during the Class Period; (iv) that defendants lacked a reasonable basis for the Company's positive statements associated with Mattress Firm; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about Tempur Sealy's then-current business and future financial prospects.
On January 27, 2017, Tempur Sealy announced that it would cease doing business with Mattress Firm during the first quarter of 2017. In response to this news, the complaint alleges, the price of Tempur Sealy common stock plummeted $20.19 per share over a two-day period, or nearly 32%, to close at $43.00 per share on January 31, 2017.
The complaint further alleges that defendants were motivated to engage in the course of conduct alleged therein to allow Company insiders to sell more than $8.2 million of Tempur Sealy common stock at artificially inflated prices during the Class Period.
Plaintiff seeks to recover damages on behalf of all purchasers of Tempur Sealy's common stock during the Class Period.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
[email protected]
SOURCE Johnson & Weaver, LLP
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