This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,060.49 -142.88 -0.78%
S&P 500 2,089.72 -18.06 -0.86%
NASDAQ 4,942.05 -37.8510 -0.76%

Partners Compare Online Brokers

Free Reports

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