This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Hagens Berman Investigates Tile Shop Holdings, Inc.

Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, today announced it is investigating Tile Shop Holdings, Inc. (“Tile Shop”) (NASDAQ: TTS) following a series of allegations by a short-seller firm, including that the company dramatically overstated earnings and failed to disclose that Beijing Pingxiu, the company’s largest supplier, was secretly controlled by the brother-in-law of Tile Shop’s CEO. Investors who have suffered significant financial losses may contact a Hagens Berman attorney working on the investigation by emailing TTS@hbsslaw.com.

Hagens Berman’s investigation seeks to uncover additional information about potential investor claims against Tile Shop. A class-action securities suit has been filed in federal court on behalf of investors who purchased Tile Shop securities between Aug. 22, 2012, and Nov. 13, 2013. Those investors can contact Hagens Berman Partner Reed Kathrein, who is leading the Hagens Berman’s investigation, by calling (510) 725-3000. Additional information is available at http://hb-securities.com/investigations/TTS.

The investigation centers around allegations made in a report published by short-seller firm Gotham City Research LLC on Nov. 14, 2013. The report claimed that:

  • Tile Shop overstated its earnings in 2013 by more than 200 percent.
  • Beijing Pingxiu (BP), the company’s largest supplier, was related to Tile Shop, in that BP is secretly controlled by the brother-in-law of Tile Shop’s CEO.
  • Tile Shop used BP to exaggerate its inventory and profits, purchasing goods at or near cost.

Gotham City’s report concluded that Tile Shop will be forced to restate the past several years’ financial results, and that Tile Shop shares were dramatically undervalued.

Following the release of the report, Tile Shop’s stock price fell from a close of $21.22 on Nov. 13, 2013, to a close of $12.95 the next day. Following the price drop, Citigroup downgraded the company’s rating from buy to neutral on Nov. 18, 2013.

Stock quotes in this article: TTS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs