Law Offices of Howard G. Smith announces that investors of Tile Shop
Holdings, Inc. (“Tile Shop” or the “Company”) (NASDAQ:TTS) have until
January 14, 2014, to move the Court to serve as lead plaintiff in the
securities fraud class action lawsuit filed in the United States
District Court for the Southern District of New York on behalf of a
class (the “Class”) comprising all purchasers of Tile Shop securities
between August 22, 2012 and November 13, 2013, inclusive (the “Class
Period”).
Tile Shop operates as a specialty retailer of manufactured and natural
stone tiles, setting and maintenance materials, and related accessories
in the United States. The Complaint alleges that throughout the Class
Period the defendants made false and/or misleading statements and failed
to disclose material adverse facts about the Company's business,
operations and financial performance.
On November 14, 2013, Gotham City Research LLC issued a report alleging
that Tile Shop inflated its 2013 earnings by 200% as a result of an
undisclosed third-party relationship with a China-based supplier,
Beijing Pingxiu. The Gotham Research report further alleges that Beijing
Pingxiu accounts for 20-30% of Tile Shop’s cost of goods sold, that it
is controlled by a relative of a Tile Shop executive, and that Tile Shop
“has used its China-based undisclosed related party and improper
accounting to overstate profits.”
If you are a member of the Class described above, you have certain
rights and have until January 14, 2014, to move for lead plaintiff
status. To be a member of the class you need not take any action at this
time or may retain counsel of your choice. If you purchased shares prior
to the Class Period and wish to learn more concerning your rights or
interests with respect to these matters, please contact Howard G. Smith,
Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite
112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll
Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com,
or visit our website at http://www.howardsmithlaw.com.
Copyright Business Wire 2013