Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating if a
securities violation was committed by Tile Shop Holdings Inc. (Nasdaq:
TTS) by artificially inflating earnings through gross margin
manipulation.
On November 14, 2013, Gotham City Research issued a report stating that
Tile Shop’s largest supplier, Beijing Pingxiu, which accounts for 20% to
30% of Tile Shop’s cost of goods sold, has been selling its product to
Tile Shop at cost. As a result, Tile Shop has artificially inflated
profits by over 200%. Per the research report Beijing Pingxiu is
“secretly controlled by Fumitake Nishi. Mr. Nishi is the CEO's
brother-in-law and a TTS employee.”
On this reported news, Tile Shop’s stock dropped over 20% in mid day
trading today, November 14, 2013. This investigation will determine
whether shareholders were harmed by manipulated earnings as Gotham City
Research claims.
If you are a Tile Shop shareholder and are interested in learning more
about the investigation or your legal rights and remedies, please
contact lead analyst Jim Baker (jimb@johnsonandweaver.com)
at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights
law firm. The firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits. For more
information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
Copyright Business Wire 2013