NEW YORK, Nov. 08, 2019 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Tandy Leather Factory, Inc. (“Tandy” or the “Company”) (NASDAQ: TLF) in the United States District Court for the Central District of California on behalf of those who purchased or acquired the securities of Tandy from March 7, 2018 and August 15, 2019, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Tandy investors under the federal securities laws.
The Complaint alleged that on August 13, 2019, after the market closed, the Company disclosed that its Audit Committee was investigating “certain aspects of the Company’s methods of valuation and expensing of costs of inventory and related issues regarding the Company’s business and operations.” On this news, the Company’s share price fell $0.55 per share, or over 10%, over two consecutive trading sessions to close at $4.90 per share on August 15, 2019, thereby injuring investors.
Then, on August 15, 2019, after the market closed, the Company disclosed that it was unable to timely file the Company’s quarterly report for the period ended June 30, 2019 due to the Audit Committee’s investigation. On this news, the Company’s share price fell $0.40 per share, or over 8%, to close at $4.50 per share on August 16, 2019, thereby injuring investors further.
On October 18, 2019, the Company revealed that certain financial statements should no longer be relied upon, citing “misstatements primarily relating to the Company’s methods of valuation and expensing of costs of inventory and related issues.” It also disclosed that its Chief Financial Officer and Treasurer, Tina Castillo, had resigned from her positions.
The Complaint alleges that Defendants failed to disclose to investors: (1) that certain costs of inventory had been improperly valued and expensed; (2) that, as a result, the Company’s financial results for certain periods were misstated; (3) that the Company lacked effective internal control over financial reporting; (4) that there was a material weakness in the Company’s internal control over financial reporting; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the January 6, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
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