According to the law firm press release, the Complaint alleges that, throughout the Class Period, the Company misrepresented its deteriorating competitive position and financial performance for the Company's full year of operations in 2012.
Tempur-Pedic manufactures and distributes mattresses and related products that incorporate visco-elastic polyurethane foam. The Complaint alleges that during the Class Period, Tempur-Pedic concealed from shareholders that: (1) the Company's competitive position had drastically weakened, and was continuing to weaken; (2) the Company was already experiencing severe negative effects from competition; (3) the Company's outlook for 2012 net sales and earnings per share was not simply weaker than earlier optimistic estimates, but was in fact, negative; and (4) as a result, Defendants lacked a reasonable basis for the positive statements made concerning the Company's condition, competitive position, and outlook.
Tempur-Pedic's true condition was revealed through a series of disclosures. Following the markets' close on April 19, 2012, Tempur-Pedic reported its financial results for the first quarter of 2012 and confirmed net sales and earnings per share guidance for full-year 2012—figures that the Company had traditionally raised when announcing first-quarter results in the two preceding years. In reaction to this news, Tempur-Pedic's stock dropped $17.22 per share, or 20.5 percent, to close at $66.53 per share on April 20, 2012.
On May 7, 2012, it was reported that an analyst had revealed that Tempur-Pedic would be offering one of its most popular mattress models at a significant discount (ranging from 12 to 17 percent off) between May 16 and July 8, 2012—an unprecedented move by the Company in the context of a non-clearance model. As a result of this news, the Company's stock fell $8.42 per share, or 14.85 percent, to close at $48.29 per share on May 7, 2012. Finally, on the morning of June 6, 2012, the Company issued a press release prior to the markets' open. Tempur-Pedic stunned the markets by slashing its recently confirmed outlook for full-year net sales by more than 10 percent and earnings per share by nearly 29 percent. In reaction to this revelation, Tempur-Pedic's stock price fell $21.28 per share, or 48.73 percent, to close at $22.39 per share on June 6, 2012.
On November 2, 2012, the Court issued an Order consolidating cases.
On December 3, 2012, the Court issued an Order approving lead plaintiffs and approving the selection of lead counsel. On March 6, 2013, the lead plaintiffs filed their consolidated and amended complaint.
On March 31, 2014, the Court issued an Order granting Defendants' Motion to Dismiss. A subsequent Judgment was entered closing this case. The Lead Plaintiff filed a Notice appealing this decision on June 6.