Case Page

 

Case Status:    DISMISSED    
On or around 11/12/2014 (Other)

Filing Date: June 20, 2012

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.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Furniture & Fixtures
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TPX
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Kentucky
DOCKET #: 12-CV-00195
JUDGE: Hon. Karen K. Caldwell
DATE FILED: 06/20/2012
CLASS PERIOD START: 01/25/2012
CLASS PERIOD END: 06/05/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  2. Ransdell & Roach PLLC
    176 Pasadena Drive, Building One, Ransdell & Roach PLLC, KY 40503
    (859) 276-6262 (859) 276-4500 ·
No Document Title Filing Date
COURT: E.D. Kentucky
DOCKET #: 12-CV-00195
JUDGE: Hon. Karen K. Caldwell
DATE FILED: 03/06/2013
CLASS PERIOD START: 01/25/2012
CLASS PERIOD END: 06/05/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Gray & White
    1200 PNC Plaza, 500 West Jefferson Street, Gray & White, KY 40202
    502.585.2060 502.585.2060 ·
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  3. Ransdell & Roach PLLC
    176 Pasadena Drive, Building One, Ransdell & Roach PLLC, KY 40503
    (859) 276-6262 (859) 276-4500 ·
  4. Scott + Scott LLP (NY)
    405 Lexington Avenue, 40th Floor, The Chrysler Building, Scott + Scott LLP (NY), NY 10174
    (212) 223-6444 (212) 223-6444 ·
No Document Title Filing Date