San Diego, CA -- (SBWIRE) -- 12/02/2013 -- An investor, who purchased shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Tile Shop Hldgs, Inc. in connection with certain allegedly false and misleading statements made between August 22, 2012 and November 13, 2013

Investors who purchased a significant amount of shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) between August 22, 2012 and November 13, 2013, and / or those who purchased NASDAQ:TTS shares in 2012 or earlier and currently hold any of those shares have certain options and for certain investors are short and strict deadlines running. Deadline: January 14, 2014. NASDAQ:TTS 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 Tile Shop Hldgs, Inc. (NASDAQ:TTS) between August 22, 2012 and November 13, 2013, that Tile Shop Hldgs, Inc. and certain of its officers and directors 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 October 30, 2013 Tile Shop Hldgs, Inc. announced results for its third quarter ended September 30, 2013.

Shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) declined from $24.33 per share on October 30, 2013, to $20.905 per share on October 31, 2013.

Then 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. declined from declined from $21.34 per share on November 13, 2013, to $10.28 per share on November 15, 2013.

Those who purchased shares of Tile Shop Hldgs, Inc. (NASDAQ:TTS) 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