Tempur Sealy Hit With Securities Class Action
WASHINGTON, D.C. — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Tempur Sealy International, Inc (“Tempur Sealy”) on behalf of purchasers of Tempur Sealy common stock during the period between July 28, 2016 and January 27, 2017 (the “Class Period”). The action is filed in the Southern District of New York and is captioned David Buehring v. Tempur Sealy International, Inc , et al., No. 17-cv-02169.
The complaint charges Tempur Sealy and certain of its current and former officers and/or directors with violations of the Securities Exchange Act of 1934. Tempur Sealy develops, manufactures, and distributes bedding products worldwide.
The complaint alleges that during the Class Period, Defendants misrepresented and failed to disclose the following adverse facts, which were known to Defendants or recklessly disregarded by them: (a) that prior to and during the Class Period, Mattress Firm had been engaged in active negotiations to be acquired and that any such acquisition was reasonably likely to have a material adverse effect in Tempur Sealy’s 2016 third and fourth quarter operating results; (b) that during the Class Period, Tempur Sealy was engaged in active discussions with Mattress Firm concerning modifications to their long-term supply agreements; (c) that Mattress Firm had been seeking significant economic concessions from Tempur Sealy during the Class Period; (d) that, based on (a) through (c) above, Defendants lacked a reasonable basis for the Company’s positive statements associated with Mattress Firm.
On January 30, 2017, before the market opened, the Company issued a press release announcing that the senior management of Mattress Firm and representatives of Steinhoff notified Tempur Sealy of their intent to terminate all of their contracts with the Company in the U.S. if Tempur Sealy did not agree to considerable modifications to their existing agreements, including “significant economic concessions.” The press release further noted that after the parties were unable to reach a resolution on the matter, the Company issued formal termination notices to Mattress Firm for all of Tempur Sealy’s brands effective January 27, 2017, and that Tempur Sealy expects to cease doing business with Mattress Firm during the first quarter of 2017.
In response to these revelations, the price of Tempur Sealy common stock plummeted $20.19 per share over a two-day period, or nearly 32%, on extremely heavy trading volume to close at $43.00 per share on January 31, 2017.
If you suffered a loss from Tempur Sealy investments you have until May 23, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery does not require that you serve as a lead plaintiff. Concerned shareholders who would like more information about their rights and potential remedies can contact U.S. Market Advisors Law Group PLLC.
About USMA
U.S. Market Advisors Law Group PLLC is a law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
Contact
David P. Abel
(202) 274-0237
[email protected]
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