Armstrong Flooring Inc.
Attention investors who purchased shares of Armstrong Flooring Inc. between March 6, 2018 and November 4, 2019:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Armstrong Flooring, Inc. ("Armstrong Flooring") concerning whether Armstrong Flooring and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period March 6, 2018 and November 4, 2019, inclusive (the "Class Period"), concerning Armstrong Flooring's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Armstrong Flooring's stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Armstrong Flooring, Inc. (“Armstrong Flooring” or the “Company”) (NYSE: AFI) between March 6, 2018 and November 4, 2019, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Armstrong Flooring during the Class Period, or purchased shares prior to the Class Period and still hold Armstrong Flooring, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org, or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public: (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. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on May 3, 2019, Armstrong Flooring’s Chief Executive Officer abruptly resigned. Then, on November 5, 2019, before the market opened, Armstrong Flooring reported $165.6 million net sales for third quarter 2019, a nearly 21% decline year-over-year, and a net loss of $31.4 million. The Company also cut its full year 2019 guidance for adjusted EBITDA to a range of $20 million to $25 million, from prior guidance range of $46 million to $54 million, citing “larger distributor movements on inventory” than anticipated.
On this news, shares of Armstrong Flooring fell over 43%, closing at $3.70 per share on November 5, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than January 14, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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