Case Page

 

Case Status:    SETTLED
On or around 06/19/2017 (Date of order of final judgment)

Filing Date: November 15, 2013

According to the law firm press release, the lawsuit claims that Tile Shop failed to disclose that one of its largest suppliers, Beijing Pingxiu (“BP”), is an undisclosed related company secretly controlled by the brother-in-law of the Company’s CEO and a Tile Shop employee. On November 14, 2013, Gotham City Research LLC issued a report asserting that the Company: (a) greatly exaggerated its true financial performance; (b) failed to disclose BP as a material related party supplier; (c) uses BP to overstate inventories, understate cost of sales and overstate gross profits; (d) purchases goods from BP at or near cost to allow Tile Shop to achieve an artificial cost advantage; and (e) overstates earnings. The complaint asserts that when this adverse information entered the market, the price of Tile Shop shares dropped substantially, damaging investors.

On February 13, 2014, the Court issued an Order consolidating cases, appointing Lead Plaintiffs, and approving Lead Counsel.

On March 13, 2014, the Court issued an Order transferring this case to the District of Minnesota. Lead Plaintiffs filed a Consolidated Complaint on May 23.

On January 13, 2017, the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on January 19. The Court granted final approval of the Settlement and dismissed this case on June 14.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Home Improvement)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TTS
Company Market: NASDAQ
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: D. Minnesota
DOCKET #: 13-CV-08160
JUDGE: Hon. Failla
DATE FILED: 11/15/2013
CLASS PERIOD START: 08/22/2012
CLASS PERIOD END: 11/13/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm P.A. (New York)
    275 Madison Avenue, 34th Floor, The Rosen Law Firm P.A. (New York), NY 10016
    (212) 686-1060 (212) 202-3827 ·
No Document Title Filing Date
COURT: D. Minnesota
DOCKET #: 14-CV-00786
JUDGE: Hon. Failla
DATE FILED: 05/23/2014
CLASS PERIOD START: 08/22/2012
CLASS PERIOD END: 01/28/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Chestnut & Cambronne, P.A. (Minneapolis)
    3700 Piper Jaffray Tower, 222 South Ninth Street, Chestnut & Cambronne, P.A. (Minneapolis), MN 55402
    612.339.730 612.339.730 ·
  2. Kessler Topaz Meltzer & Check LLP (Pennsylvania)
    280 King of Prussia Road, Kessler Topaz Meltzer & Check LLP (Pennsylvania), PA 19087
    610.667.7706 610.667.7706 · info@ktmc.com
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date