Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of purchasers of the securities of Furniture Brands International, Inc. (“Furniture Brands” or the “Company”) (NYSE:FBN) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by Furniture Brands between February 13, 2013 and August 5, 2013.
Furniture Brands engages in designing, manufacturing, sourcing and retailing home furnishings in the United States and internationally. The Company’s trade names include, among others, Thomasville, Broyhill, Lane, Drexel Heritage, and Henredon. The Company carries its trade names on its books as assets, which are tested annually for impairment by comparing the carrying value and fair value of each trade name to determine the amount, if any, of impairment. According to the Company’s annual report for fiscal year 2012, filed March 6, 2013 with the Securities and Exchange Commission on Form 10-K, “lower sales trends, decreases in projected net sales, decreases in royalty rates, or increases in the discount rate would cause impairment charges and a corresponding reduction in our earnings and net worth.”
The investigation is related to allegations that the Company overstated the value of its trade name. On August 6, 2013 Furniture Brands issued a press release announcing its financial results for the second quarter of 2013, including $10.8 million of asset impairment charges related to trade name impairments. Following this news, Furniture Brands shares declined $0.84 per share, or more than 38% from the previous day’s closing price, to close on August 6, 2013, at $1.37 per share, on unusually heavy trading volume.
If you purchased Furniture Brands shares, if you have information or would like to learn more about these claims, or if you purchased Furniture Brands shares prior to February 13, 2013 and have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.