Case Page

 

Case Status:    ONGOING    
On or around 10/05/2017 (Ongoing date of last review)

Filing Date: March 24, 2017

According to the law firm press release, the complaint charges Tempur Sealy and certain of its officers with violations of the Securities Exchange Act of 1934. Tempur Sealy develops, manufactures, and distributes bedding products worldwide.

Specifically, the complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Tempur Sealy's business and prospects, including, among other things: (i) that prior to and during the Class Period, Mattress Firm Holding Corp. ("Mattress Firm"), the Company's largest customer which accounted for approximately 25% of the Tempur Sealy's 2015 net sales, had been engaged in active negotiations to be acquired and that any such acquisition was reasonably likely to have a material adverse effect in Tempur Sealy's 2016 third and fourth quarter operating results; (ii) that during the Class Period, Tempur Sealy was engaged in active discussions with Mattress Firm concerning modifications to their long-term supply agreements; (iii) that Mattress Firm had been seeking significant economic concessions from Tempur Sealy during the Class Period; (iv) that defendants lacked a reasonable basis for the Company's positive statements associated with Mattress Firm; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about Tempur Sealy's then-current business and future financial prospects.

On January 27, 2017, Tempur Sealy announced that it would cease doing business with Mattress Firm during the first quarter of 2017. In response to this news, the complaint alleges, the price of Tempur Sealy common stock plummeted $20.19 per share over a two-day period, or nearly 32%, to close at $43.00 per share on January 31, 2017.

The complaint further alleges that defendants were motivated to engage in the course of conduct alleged therein to allow Company insiders to sell more than $8.2 million of Tempur Sealy common stock at artificially inflated prices during the Class Period.

A consolidated complaint was filed on August 7, 2017.

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: S.D. New York
DOCKET #: 17-CV-02169
JUDGE: Hon. Lewis A. Kaplan
DATE FILED: 03/24/2017
CLASS PERIOD START: 07/28/2016
CLASS PERIOD END: 01/27/2017
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Johnson & Weaver LLP
    99 Madison Avenue, 5th Floor, Johnson & Weaver LLP, NY 10016
    212.802.1486 212.602.1592 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 17-CV-02169
JUDGE: Hon. Lewis A. Kaplan
DATE FILED: 08/07/2017
CLASS PERIOD START: 09/09/2016
CLASS PERIOD END: 01/27/2017
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
No Document Title Filing Date