LOS ANGELES, Jan. 7, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Interface, Inc. ("Interface" or the "Company") (NASDAQ: TILE) securities between March 2, 2018 and September 28, 2020, inclusive (the "Class Period"). Interface investors have until January 11, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On April 24, 2019, Interface revealed that in November 2017, it had received a request for information and documents from the U.S. Securities and Exchange Commission ("SEC") "in connection with an investigation into the Company's historical quarterly earnings per share ["EPS"] calculations and rounding practices during the period 2014-2017." The Company further disclosed that it had "received subpoenas from the SEC in February 2018, July 2018 and April 2019 requesting additional documents and information" and that Interface had conducted an internal investigation into these issues, at the SEC's request.
On this news, Interface's stock price fell $1.43 per share, or 8.37%, to close at $15.66 per share on April 25, 2019, thereby injuring investors.
On September 28, 2020, the SEC issued an enforcement order following its investigation into Interface's historical quarterly EPS calculations and rounding practices. The Company agreed to pay a $5 million fine to resolve the matter and was ordered to cease and desist from violating the federal securities laws. The SEC also disclosed that "Interface employees caused Interface to produce documents in response to Commission investigative requests that were suggestive of contemporaneous support for journal entries that, in truth, did not exist at the time the entries were recorded," and that they had altered certain documents after the SEC's investigation initiated.
On this news, the Company's stock price fell $0.20 per share, or 3.13%, over the following two trading sessions to close at $6.18 per share on September 29, 2020, thereby injuring investors.
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 that: (1) Interface had inadequate disclosure controls and procedures and internal control over financial reporting; (2) consequently, Interface, inter alia, reported artificially inflated income and EPS in 2015 and 2016; (3) Interface and certain of its employees were under investigation by the SEC with respect to the foregoing issues since at least as early as November 2017, had impeded the SEC's investigation, and downplayed the true scope of the Company's wrongdoing and liability with respect to the SEC investigation; and (4) as a result, the Company's public statements were materially false and misleading at all relevant times.
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If you purchased Interface securities during the Class Period, you may move the Court no later than January 11, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you purchased Interface securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, 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 [email protected], 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.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles