Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating if a securities violation was committed by Tile Shop Holdings Inc. (Nasdaq: TTS) by artificially inflating earnings through gross margin manipulation.
On November 14, 2013, Gotham City Research issued a report stating that Tile Shop’s largest supplier, Beijing Pingxiu, which accounts for 20% to 30% of Tile Shop’s cost of goods sold, has been selling its product to Tile Shop at cost. As a result, Tile Shop has artificially inflated profits by over 200%. Per the research report Beijing Pingxiu is “secretly controlled by Fumitake Nishi. Mr. Nishi is the CEO's brother-in-law and a TTS employee.”
On this reported news, Tile Shop’s stock dropped over 20% in mid day trading today, November 14, 2013. This investigation will determine whether shareholders were harmed by manipulated earnings as Gotham City Research claims.
If you are a Tile Shop shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ( email@example.com) at 619-230-0063.Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.