According to the Complaint, Armstrong Flooring, Inc. manufactures and sells resilient and wood flooring products primarily used in the construction and renovation of commercial, residential, and institutional buildings.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company had engaged in channel stuffing to artificially boost sales; (2) that the Company’s internal control over inventory levels was not effective; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On March 2, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on July 2.

On November 30, 2020, the parties reached an agreement-in-principle to settle. On January 15, 2021, the parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order preliminarily approving the Settlement on February 22. On July 19, the Court granted final approval of the Settlement and entered Final Judgment. The Court issued an Order on March 21, 2022, authorizing distribution of Settlement funds.