SAN FRANCISCO, July 17, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges long-time investors in Mohawk Industries, Inc. (NYSE: MHK) to contact the firm now. The firm is investigating possible accounting fraud and whether Mohawk’s board of directors, including certain senior executives, breached fiduciary duties owed to the company and should be held accountable. Hagens Berman also encourages persons who may be able to assist the firm’s investigation to contact its attorneys.
Mohawk Industries (MHK) Investigation:
Hagens Berman is investigating whether, during April 28, 2017 through July 25, 2019, (1) Mohawk fabricated revenues by attempting delivery to customers that were closed and recognized these attempts as sales, (2) overproduced product to report higher operating margins and maintained significant unsaleable inventory, (3) improperly valued certain inventory or improperly delivered inventory with knowledge that it was defective and customers would return it, and (4) if so, whether Mohawk’s board should be held accountable.
On July 13, 2020, Mohawk disclosed it received subpoenas issued by the U.S. Attorneys Office for the Northern District of Georgia and the U.S. Securities and Exchange Commission on these topics.
“We’re focused on potential damage to Mohawk and, if the company improperly recorded revenues and overvalued unsaleable inventory between April 28, 2017 through July 25, 2019, whether the company’s board of directors may be culpable,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Mohawk should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MHK@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895
