Public Employees' Retirement System of Mississippi v. Mohawk Industries, Inc.

Court: United States District Court for the Northern District of Georgia
Case Number: 4:20-cv-00005-VMC
Case Leaders: John C. Browne, Jonathan D. Uslaner
Case Team: Richard D. Gluck, Robert Kravetz, Michael Mathai, Lauren M. Cruz, Alexander T. Payne

This is a securities fraud class action filed on behalf 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), alleging 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 Public Employees’ Retirement System of Mississippi (“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.

In January 2013, the parties reached an agreement in principle to settle the action. On January 20, 2023, Lead Plaintiff filed a motion seeking preliminary approval of the settlement, which is currently pending before the Court.