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

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.

A copy of the Notice 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.

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 Public Employees’ Retirement System of Mississippi as Lead Plaintiff, and approving their selection of BLB&G as Lead Counsel for the Class. On June 29, 2020, Lead Plaintiff filed their Consolidated Class Action Complaint For Violation Of The Securities Laws (the “Complaint”). Defendants moved to dismiss the Complaint on October 27, 2020. Lead Plaintiff filed an opposition to Defendants’ motion on December 28, 2020, and Defendants filed a reply brief in further support of their motion to dismiss on January 27, 2021. The Court denied the Defendants’ motion to dismiss on September 29, 2021. The Court granted class certification on November 28, 2022. Thereafter, the parties agreed to settle the case. On January 20, 2023, Lead Plaintiff filed an unopposed motion and memorandum of law in supporting preliminary approval of the settlement, and the Court granted the motion for preliminary approval on February 3, 2023.

Following Notice to the Class, the Court conducted a final approval hearing on May 31, 2023. 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 expenses. 

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 expenses. Claims processing is complete. On October 31, 2024, Counsel filed a distribution motion seeking the distribution of funds.  On January 8, 2025, the Court approved the Distribution of the Net Settlement Fund to eligible claimants.  The initial distribution of the net settlement fund occurred in February 2025.