The Law Offices of Vincent Wong announce that a class action lawsuit has been commenced in the United States District Court for the Northern District of Georgia on behalf of investors who purchased Mohawk Industries, Inc. (NYSE: MHK) securities between April 28, 2017 and July 25, 2019.
According to the Mohawk Industries lawsuit, the Company, when faced with slowing demand for its conventional flooring products, engaged in a scheme to inflate its revenues and earnings by booking fictitious sales of those products. This practice is known as channel stuffing and was used by Mohawk to hide severely declining demand for conventional flooring products. Throughout the Class Period, Defendants made false and/or misleading statements about Mohawk's sales growth and the demand for the Company's conventional flooring products. Defendants also reassured investors about Mohawk's increasing accounts receivable and inventory levels by falsely attributing those increases to external factors like rising raw material costs and inflation. As a result of these misrepresentations, shares of Mohawk's common stock traded at artificially inflated prices during the Class Period.
If you suffered a loss in Mohawk Industries you have until March 3, 2020 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
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