September 21, 2020 - The court granted the defendants' motion to dismiss.
November 21, 2019 - A motion to dismiss the amended complaint was filed.
November 12, 2019 - A second amended complaint was filed.
October 7, 2019 - An amended complaint was filed.
May 20, 2019 - An investor in shares of Floor & Decor Holdings, Inc. (NYSE: FND) filed a lawsuit in the U.S. District Court for the Northern District of Georgia over alleged violations of Federal Securities Laws by Floor & Decor Holdings, Inc. in connection with certain allegedly false and misleading statements made between May 23, 2018 and August 1, 2018.
Atlanta, GA based Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer of hard surface flooring and related accessories.
On May 3, 2018, Floor & Decor Holdings, Inc. announced its financial results for the first quarter of fiscal 2018, reporting revenue and earnings results that beat expectations and increasing the Company’s financial projections for the remainder of fiscal 2018.
On May 23, 2018, Floor & Decor Holdings, Inc. filed a Registration Statement and Prospectus with the SEC for a secondary offering of 10 million shares of Floor & Decor common stock at $44.77 per share (the “May 24 Secondary Offering”), raising more than $400 million for the selling shareholders. The Registration Statement incorporated the Company’s historical financial performance and growth prospects and purported to warn investors that there were certain risks that, “if” they occurred, “could” cause the Company’s financial results to be adversely affected.
Then on August 2, 2018, before the market opened, Floor & Decor Holdings, Inc announced its financial results for the second quarter of 2018. The second quarter results were in sharp contrast to the assurances made on May 3, 2018 about the strength of the Company’s business and its continuing growth trajectory for the remainder of 2018.
Shares of Floor & Decor Holdings, Inc. (NYSE: FND) declined from $55.86 per share on June 15, 2018 to as low as $25.20 per share on October 26, 2018.
On February 21, 2019, Floor & Decor Holdings, Inc announced its fourth quarter and fiscal 2018 financial results. Floor & Decor Holdings, Inc. reported that its annual Total Revenue rose from over $13.8 billion in 2017 to over $1.7 billion in 2018 and that its Net Income increased from $102.78 million in 2017 to $116.18 million in 2018.
On May 2, 2019, Floor & Decor Holdings, Inc. reported that its and first quarter fiscal 2019 financial results.
Shares of Floor & Decor Holdings, Inc. (NYSE: FND) declined from $48.47 per share on May 2, 2019 to as low as $38.61 per share on May 20, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Floor & Decor Holdings, Inc. (NYSE: FND) common shares between May 23, 2018 and August 1, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 23, 2018 and August 1, 2018, the defendants made false and misleading statements and/or failed to disclose adverse information regarding Floor & Decor’s business and prospects. Specifically, each of the statements in the Registration Statement filed with the SEC regarding the current financial condition of the Company was materially false and misleading because, prior to the May 24 Secondary Offering, defendants knew, but failed to disclose, that the Company had already begun to experience declining sales trends that would ultimately result in the reduction of its fiscal 2018 sales and adjusted earnings per share guidance, which had been increased as recently as May 2018. As a result of this adverse information being withheld from the market, the price of the Company’s stock was artificially inflated during the Class Period, allowing Company insiders to sell more than 10.3 million shares of Floor & Decor common stock, including the shares sold in the May 24 Secondary Offering, for proceeds of more than $466 million.