Shareholders Foundation, Inc.

Alert: Tile Shop Hldgs, Inc. (NASDAQ:TTS) Investor Investigation over Possible Wrongdoing

An investigation on behalf of current investors in Tile Shop Hldgs, Inc. (NASDAQ:TTS) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:TTS stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
Repost This

San Diego, CA -- (SBWIRE) -- 05/06/2014 -- An investigation was announced on behalf of investors who currently hold shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) concerning whether certain directors and officers of Tile Shop Hldgs, Inc. breached their fiduciary duties and caused damages to the company and its shareholders.

Investors who are current long term investors in Tile Shop Hldgs, Inc. (NASDAQ:TTS) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm for current long term investors in Tile Shop Hldgs, Inc. (NASDAQ:TTS) stocks follows a lawsuit filed recently against Tile Shop Hldgs, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:TTS stocks concerns whether certain Tile Shop Hldgs, Inc. (NASDAQ:TTS) officers and directors are liable in connection with the allegations made in that lawsuit.

According to that complaint filed the plaintiff alleges that Tile Shop Hldgs, Inc. violated the Securities Exchange Act of 1934. More specifically, the plaintiff alleges Tile Shop Hldgs failed to disclose that one of its largest suppliers, Beijing Pingxiu (“BP”), is an undisclosed related company secretly controlled by Fumitake Nishi, the brother-in-law of the Company’s CEO and a Tile Shop Hldgs employee.

Shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) grew from under $17 per share in early 2013 to as high as over $30 in July, respectively almnost $30 per share in September 2013. Since then NASDAQ:TSS shares declined to under $24 in late October 2013.

On November 14, 2013, a report was published that alleged that Tile Shop Hldgs, Inc. has greatly exaggerated its true financial performance, that Tile Shop Hldgs, Inc. failed to disclose Beijing Pingxiu as a material related party supplier, that Tile Shop Hldgs, Inc. uses Beijing Pingxiu to overstate inventories, understate cost of sales and overstate gross profits, that Tile Shop Hldgs, Inc. purchases goods from Beijing Pingxiu at or near cost to allow Tile Shop Hldgs, Inc. to achieve an artificial cost advantage, and that Tile Shop Hldgs, Inc. overstates earnings.

Shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) declined from declined from $21.34 per share on November 13, 2013, to $10.28 per share on November 15, 2013.

On May 2, 2014, NASDAQ:TTS shares closed at $14.22 per share.

Those who purchased shares of Tile Shop Hldgs, Inc. have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com