BOCA RATON, FL -- (Marketwired) -- 08/16/13 -- Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Eastern District of Missouri against Furniture Brands International, Inc. ("Furniture Brands" or the "Company") (NYSE: FBN) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from February 13, 2013 through August 5, 2013 (the "Class Period"). The complaint brings forth claims for violations of the Securities Exchange Act of 1934.
Furniture Brands manufactures and distributes residential furniture. The Company's trade names include, among others, Thomasville, Broyhill, Lane, and Drexel Heritage. The complaint alleges that the Defendants made false and misleading statements and/or failed to disclose that: (a) the Company was experiencing weaknesses in its wholesale business; (b) the Company's trade names were being carried at inflated values that would require material impairments; (c) the Company was experiencing severe liquidity issues; (d) and based upon the above, the Defendants lacked a reasonable basis for their positive statements about the Company during the Class Period.
On August 6, 2013, prior to the open of the financial markets, Furniture Brands announced second quarter financial results disclosing material impairments and that the Company would need to address liquidity challenges and improve business performance by implementing strategic initiatives to achieve cost reductions, pursuing asset sales and working with its lenders to potentially modify its credit facilities.
In reaction to the disappointing news, Furniture Brand's stock price fell $0.84 per share or 38.0% from $2.21 per share on August 5, 2013 to $1.37 per share on August 6, 2013, on usually heavy trading volume. You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com.
If you purchased Furniture Brands stock between February 13, 2013 and August 5, 2013, you may contact Joe White (firstname.lastname@example.org) or Marc Grobler (email@example.com) at Saxena White P.A. to discuss your rights and interests.
If you purchased Furniture Brands common stock during the Class Period of February 13, 2013 through August 5, 2013, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than October 15, 2013. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.