August 12, 2013 (Shareholders Foundation) - An investigation on behalf of investors of Furniture Brands International, Inc. (NYSE:FBN) shares over potential securities laws violations by Furniture Brands International and certain of its directors and officers in connection certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Furniture Brands International, Inc. (NYSE:FBN) concerning whether a series of statements by Furniture Brands International regarding its business, its prospects and its operations were materially false and misleading at the time they were made. More specifically, the investigation concerns potential claims against Furniture Brands, Inc. resulting from allegations that the Company may have fraudulently overstated the value of its trade name.
Furniture Brands International, Inc. reported that its annual Total Revenue declined from over $1.15 billion in 2010 to over $1.07 billion in 2012 and that its Net Loss for those time periods increased from $39.03 million to $47.27 million.
According to the investigation between July 17, 2013, and August 2, 2013, Kuo Shan Wei sold about 250,000 NYSE:FBN shares, for proceeds of about $675,000, including over 140,000 shares sold on August 1-2 for about $325,000. Kuo Shan Huei is co-founder and executive chairman of Samson Holding, that manufactures residential furniture in the Peoples Republic of China. The Company wholesales the furniture to department stores, retail chains, and independent retail stores in the United States, Canada, and elsewhere in the world.
On August 6, 2013, Furniture Brands International, Inc. announced financial results for the second quarter ended June 29, 2013. Among other things, Furniture Brands International, Inc. said that the $26.9 million asset impairment charges includes $15.7 million related to an impairment of software assets as the Company is narrowing the scope of a planned systems implementation, $10.8 million related to trade name impairments, and $0.4 million of impairment charges related to assets held for sale.
Shares of Furniture Brands International, Inc. (NYSE:FBN) declined since its 1:7 split on May 28, 2013, from $6.76 per share to $1.05 per share on August 7, 2013.
On August 12, 2013, NYSE:FBN shares closed at $1.15 per share.