SAN FRANCISCO, Jan. 09, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Interface, Inc. (NASDAQ: TILE) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Interface, Inc. (TILE) Securities Class Action:
The lawsuit centers on Interface’s disclosures of its financial results, including its accounting for certain expenses such as management bonus accruals, independent consultant fees and stock-based compensation.
According to the complaint, Interface and senior management repeatedly pleased investors when it reported income and earnings per share growth, consistently meeting or exceeding analysts’ estimates and assured them that the Company’s internal controls over financial reporting were effective.
Investors began to learn the truth, according to the complaint, on Apr. 24, 2019, when Interface announced that the SEC had served three separate subpoenas on the Company probing its earnings per share calculations from 2014 - 2017. The Company also announced that it had placed its Chief Accounting Officer Gregory Bauer on administrative leave when it learned Bauer added notes to materials produced to the SEC. Yet, the Company and senior management maintained they had cooperated with the SEC investigation since its inception.
Then, on Sept. 28, 2020, the SEC filed a settled action against the Company for securities law violations, finding that (1) during Q2 2015 through Q2 2016 Interface made unsupported manual accounting adjustments to certain expenses to meet EPS estimates, (2) Bauer, and former Chief Financial Officer (Patrick Lynch) directed the unsupported entries, and (3) Interface impeded the SEC’s investigation.
These disclosures drove the price of Interface shares down sharply.
“We’re focused on investors’ losses and proving Interface and senior management intentionally misled investors through illegal earnings smoothing,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Interface investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Interface should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TILE@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895