Shareholders Foundation, Inc.

Furniture Brands International, Inc. (NYSE:FBN) Investor Lawsuit Alleges Misleading Statements

A lawsuit was filed on behalf of investors in Furniture Brands International, Inc. (NYSE:FBN) shares over alleged securities laws violations. Deadline: October 15, 2013. NYSE:FBN investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 

San Diego, CA -- (SBWIRE) -- 08/27/2013 -- An investor, who purchased shares of Furniture Brands International, Inc. (NYSE:FBN), filed a lawsuit in the U.S. District Court for the Eastern District of Missouri over alleged violations of Federal Securities Laws by Furniture Brands International, Inc. in connection with certain allegedly false and misleading statements made between February 13, 2013 and August 5, 2013.

Investors who purchased a significant amount of shares of Furniture Brands International, Inc. (NYSE:FBN) between February 13, 2013 and August 5, 2013 , and / or those who purchased NYSE:FBN shares prior to February 2013 and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: October 15, 2013. NYSE:FBN investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges, on behalf of all persons or entities who purchased or otherwise acquired securities of Furniture Brands International, Inc. (NYSE:FBN) between February 13, 2013 and August 5, 2013, that Furniture Brands International, Inc. violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that the defendants made false and misleading statements and/or failed to disclose that Furniture Brands International, Inc. was experiencing weaknesses in its wholesale business, that Furniture Brands International's trade names were being carried at inflated values that would require material impairments, that Furniture Brands International, Inc. was experiencing severe liquidity issues, and that based upon the above, the Defendants lacked a reasonable basis for their positive statements about Furniture Brands International, Inc. between February 13, 2013 and August 5, 2013.

Furniture Brands International, Inc. reported that its annual Total Revenue declined from over $1.15 billion in 2010 to over $1.07 billion in 2012 and that its Net Loss for those time periods increased from $39.03 million to $47.27 million.

On August 6, 2013, Furniture Brands International, Inc. announced financial results for the second quarter ended June 29, 2013. Among other things, Furniture Brands International, Inc. said that the $26.9 million asset impairment charges includes $15.7 million related to an impairment of software assets as the Company is narrowing the scope of a planned systems implementation, $10.8 million related to trade name impairments, and $0.4 million of impairment charges related to assets held for sale.

Shares of Furniture Brands International, Inc. (NYSE:FBN) declined since its 1:7 split on May 28, 2013, from $6.76 per share to as low as $0.55 per share on August 20, 2013.

On August 26, 2013, NYSE:FBN shares closed at $0.600 per share.

Those who purchased shares of Furniture Brands International, Inc. (NYSE:FBN), have certain options and should contact the Shareholders Foundation.

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