Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Armstrong Flooring, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Armstrong Flooring, Inc. (“Armstrong” or the “Company”) (NYSE:AFI) of the January 14, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Armstrong stock or options between March 6, 2018 and November 4, 2019 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Armstrong securities between March 6, 2018 and November 4, 2019 (the “Class Period”). The case, Michael Chupa v. Armstrong Flooring, Inc. et al, No. 19-cv-09840 was filed on November 15, 2019, and has been assigned to Judge Christina A. Snyder.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements, as well as failing to disclose to investors: (1) that the Company had engaged in channel stuffing to artificially boost sales; (2) that the Company’s internal control over inventory levels was not effective; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis
The truth began to emerge on May 3, 2019 when Defendant Maier abruptly resigned from his positions. In a Form 8-K filed with the SEC, the Company disclosed that “pursuant to a mutual agreement between the Company and Donald R. Maier, Mr. Maier’s employment with the Company ceased and he resigned as a member of the Board of Directors.”
On this news, Armstrong’s stock price fell from $14.89 per share on May 2, 2019 to a closing price of $13.14 per share on May 3, 2019—a $1.75 or 11.75% drop.
Then, on November 5, 2019, before the market opened, the Company reported $165.6 million net sales for third quarter 2019, a nearly 21% decline year-over-year, and a net loss of $31.4 million. The Company also cut its full year 2019 guidance for adjusted EBITDA to a range of $20 million to $25 million, from prior guidance range of $46 million to $54 million.
On this news, Armstrong’s stock price fell from $6.60 per share on November 4, 2019 to a closing price of $3.70 per share on November 5, 2019—a $2.90 or 43.94% drop.
Armstrong Flooring, Inc. (AFI)
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Filed on 11/19/2019
Lead Plaintiff Deadline 01/14/2020
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