Floor & Decor investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Floor & Decor is a high-growth differentiated multi-channel specialty retailer of hard surface flooring and related accessories, with warehouse-format stores across 21 states. One of Floor & Decor’s key differentiating factors is its large warehouse-format stores, which carry a high inventory of hard surface flooring and tools and accessories in order to offer customers immediate availability on everything needed to complete entire flooring or remodeling projects.
On May 3, 2018, Floor & Decor issued a press release announcing its financial results for the first quarter of fiscal 2018, ended March 29, 2018. The financial results beat Floor & Decor’s reported revenue and earnings expectations and Floor & Decor also increased its financial projections for the remainder of fiscal year 2018.
On May 23, 2018, Floor & Decor filed a registration statement and Rule 424(b) Prospectus with the SEC for a secondary offering of 10 million shares of Floor & Decor common stock at $44.77 per share, which became effective on or around May 23, 2018. On May 25, 2018, Floor & Decor filed a Prospectus Supplement with the SEC for the May 24, 2018 secondary offering (“May 24 Secondary Offering”). The registration statement, Prospectus and Prospectus Supplement are referred to herein collectively as the “Registration Statement.” The May 24 Secondary Offering raised more than $400 million for the selling stockholders. Including the sales in the May 24 Secondary Offering, and as Floor & Decor’s stock price increased to above $55.00 per share thereafter, Floor & Decor insiders unloaded more than 10.3 million shares of Floor & Decor common stock for proceeds of more than $466 million.
The complaint alleges that, on August 2, 2018, before the market opened, Floor & Decor issued a press release announcing its financial results for the second quarter of 2018. The second quarter results were in sharp contrast to the assurances made on May 3, 2018 about the strength of Floor & Decor’s business and its continuing growth trajectory for the remainder of 2018. Following this news, Floor & Decor’s stock price declined more than 21%, from a close of $47.71 per share on August 1, 2018 to a close of $37.50 per share on August 3, 2018.
The complaint alleges that the statements in the Registration Statement filed with the SEC regarding the current financial condition of Floor & Decor, including the purported risk warnings associated with the purchase of Floor & Decor’s stock, were materially false and misleading because Floor & Decor knew, but failed to disclose, that prior to the May 24 Secondary Offering, Floor & Decor had already begun to experience declining sales trends that would ultimately result in the reduction of its fiscal 2018 sales and adjusted EPS guidance, which had been increased as recently as May 2018. The Registration Statement failed to disclose this material information, disclosure of which was required by SEC Regulation S-K, 17 C.F.R. §229.303 (“Item 303”). Item 303 requires disclosure of any known trends or uncertainties that have had or that the registrant reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations.
If you are a member of the class described above, you may no later than July 19, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
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