Retirement Fund Files Suit Against Lumber Liquidators

Toano, VA, Oct. 14, 2014 -- Lumber Liquidators is facing a class action law suit brought by the City of Hallandale Beach, Florida, Police Officers' and Firefighters' Personal Retirement Trust, according to the Virginia Gazette.

It was filed on behalf of all purchasers of Lumber Liquidators' publicly traded stock between Nov. 25, 2013 and July 9, 2014.

A previous class action suit by investors was withdrawn. Two suits by customers over the quality of flooring products purchased are ongoing, the newspaper said.

Also named in the suit are Robert M. Lynch, the company's CEO, and Daniel Terrell, its CFO.

The new suit, filed in U.S. District Court, accuses the firm of false and misleading statements about future revenues, earnings growth and profit margins that caused the company's stock to trade "at artificially inflated prices" during the period covered by the class.

The suit also notes that Lynch sold 75,121 shares for $103.11 per share on Feb. 21, about two months before the company's report of a weaker than anticipated first quarter caused stock prices to fall.

After the firm reported weaker than expected results, the stock fell another 21.5% July 9, which, according to the lawsuit, erased over $400 million in market value.