SAN DIEGO, Sept. 26, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed by an investor in shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) against certain directors of Tile Shop Holdings, Inc. over alleged breaches of fiduciary duties.
Investors who purchased shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) in July 2012 or earlier and continue to hold any of those (NASDAQ:TTS) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties by engaging in allegedly conflicted relationships with suppliers that led Tile Shop Hldgs, Inc to sell lead-contaminated tile products. The plaintiff claims that certain board members raised more than $100 million through secondary stock sales while they knowingly allowed Tile Shop Hldgs, Inc to deal with a Chinese supplier through one director’s relatives and purchased and resold products with extremely high levels of lead.
On November 14, 2013, a report was published that alleged that Tile Shop Hldgs, Inc. has greatly exaggerated its true financial performance, that Tile Shop Hldgs, Inc. failed to disclose Beijing Pingxiu as a material related party supplier, that Tile Shop Hldgs, Inc. uses Beijing Pingxiu to overstate inventories, understate cost of sales and overstate gross profits, that Tile Shop Hldgs, Inc. purchases goods from Beijing Pingxiu at or near cost to allow Tile Shop Hldgs, Inc. to achieve an artificial cost advantage, and that Tile Shop Hldgs, Inc. overstates earnings.
On November 15, 2013, a lawsuit was filed against Tile Shop Hldgs, Inc over alleged securities laws violations. The plaintiff alleged that Tile Shop Hldgs failed to disclose that one of its largest suppliers, Beijing Pingxiu, is an undisclosed related company secretly controlled by Fumitake Nishi, the brother-in-law of the Company’s CEO and a Tile Shop Hldgs employee.
Those who purchased shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) in July 2012 or earlier and continue to hold any of those (NASDAQ:TTS) shares, have certain options and should contact the Shareholders Foundation, Inc at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.