NEW YORK, June 20, 2012 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed a class action lawsuit on June 20, 2012 in the U.S. District Court for the Eastern District of Kentucky. The lawsuit was filed on behalf of purchasers of Tempur-Pedic International Inc. ("Tempur-Pedic" or the "Company") common stock (NYSE:TPX) between January 25, 2012 and June 5, 2012, inclusive (the "Class Period").
The action charges Tempur-Pedic and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. 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.
If you are a member of this Class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
If you purchased Tempur-Pedic common stock during the Class Period, you may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Eastern District of Kentucky no later than August 20, 2012. A lead plaintiff is a court-appointed representative for absent Class members. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, you may contact Rachel A. Avan, Esq. of Labaton Sucharow LLP, at (888) 753-2796 or (212) 907-0709, or via email at ravan@labaton.com.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country's premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for nearly 50 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.