The law firm of Federman & Sherwood has launched an investigation of Tile Shop Holdings, Inc. (NASDAQ: TTS) (“TTS” or “the Company”) for possible violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and/or breaches of fiduciary duty by the Company’s officers and directors.
In a recent 58-page report, Gotham City Research claimed that TTS inflated and overstated its 2013 earnings by as much as 200%. Federman & Sherwood is therefore investigating whether the Company: (1) uses captive, phantom Chinese suppliers to overstate inventories, understate cost of sales, and overstate gross profits in its SEC filings; and, (2) has had material weaknesses in its internal accounting controls between 2011 and 2013, which will most likely cause the Company to restate its financials.
If you currently own common stock in Tile Shop Holdings, Inc., have any information to assist in our investigation, or have questions or concerns regarding this notice or your rights or interests in this matter, please contact Federman & Sherwood. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases across the country.