| Court: | United States District Court for the Northern District of Georgia |
| Case Number: | 4:20-cv-00005-VMC |
| Case Leader: | Jonathan D. Uslaner |
| Case Team: | Robert Kravetz, Michael Mathai, Lauren M. Cruz |
Lead Plaintiff Has Settled the Action for $60 Million
The Court-appointed Lead Plaintiff Public Employees’ Retirement System of Mississippi (“Mississippi”), on behalf of itself and the Court-certified Class (as defined below), reached a settlement of this securities fraud class action (the “Action”) for $60,000,000 in cash (the “Settlement”). The Settlement resolves all claims in the Action.
The Court-certified Class consists of all persons or entities who purchased or otherwise acquired publicly traded common stock of Mohawk Industries, Inc. (“Mohawk”) between April 28, 2017 and July 25, 2019, inclusive, and who were damaged thereby (subject to certain exclusions).
On January 13, 2023, the parties entered into a Stipulation and Agreement of Settlement (the “Stipulation”) setting forth the terms of the Settlement. On January 20, 2023, Lead Plaintiff filed a motion seeking preliminary approval of the Settlement, which the Court granted by Order entered on February 6, 2023 (the “Preliminary Approval Order”). Pursuant to the Preliminary Approval Order, a Notice of the Settlement was mailed to potential Class Members beginning in early March 2023.
On May 31 2023, the Court held a hearing to consider final approval of the Settlement and related matters. Following the hearing, the Court entered a judgment finally approving the Settlement, an order approving the Plan of Allocation for the proceeds of the Settlement, and an order awarding attorney's fees and litigation expense.
Copies of the Notice and the Claim Form can be found under the Case Documents section of this webpage. You may also visit the Settlement website, www.MohawkIndustriesSecuritiesLitigation.com, for more information about the Settlement.
If you are a member of the Class, in order to be potentially eligible to receive a payment from the Settlement, you must submit a Claim Form with adequate supporting documentation to the Claims Administrator either by mail or online, in accordance with the instructions set forth in the Claim Form. If mailed, the Claim Form must be postmarked no later than July 5, 2023 and mailed to the address stated in the Claim Form. If submitted online at www.MohawkIndustriesSecuritiesLitigation.com, the Claim Form must be submitted no later than July 5, 2023.
Payments to eligible claimants will be made after the completion of all claims processing. Please be patient, as this process will take some time to complete.
IMPORTANT DEADLINE
|
July 5, 2023 |
Claim Filing Deadline. If mailed, the Claim Form must be postmarked no later than July 5, 2023 and mailed to the address stated in the Claim Form. If submitted online at www.MohawkIndustriesSecuritiesLitigation.com, the Claim Form must be submitted no later than July 5, 2023. |
The Litigation
The Action alleges claims pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Mohawk and its CEO, Jeffrey S. Lorberbaum (together with Mohawk, “Defendants”).
On March 18, 2020, the Court issued an Order appointing Mississippi as Lead Plaintiff and approving Mississippi’s selection of BLB&G as Lead Counsel.
On June 29, 2020, Lead Plaintiff filed their Consolidated Class Action Complaint For Violation Of The Securities Laws (the “Complaint”). The Complaint alleges that Mohawk engaged in a fraudulent scheme to fabricate revenues through fictitious “sales” of products that were not delivered to customers and that Defendants made repeated false statements to mispresent and conceal the truth about the quality of Mohawk’s LVT and the reasons for the Company’s rising inventory levels and slowing inventory turnover. The Complaint further alleges that the price of Mohawk common stock was artificially inflated as a result of Defendants’ allegedly false and misleading statements and declined when the truth was allegedly revealed.
Defendants moved to dismiss the Complaint on October 27, 2020, briefing on the motion to dismiss closed on January 27, 2021, and the Court largely denied Defendants’ motion to dismiss on September 29, 2021. Lead Plaintiff moved for class certification on January 26, 2022, briefing on the class certification motion closed on June 8, 2022, and the Court granted the class certification motion on November 29, 2022.