Lumber Liquidators gets served a class action suit

In what is hardly the first bit of legal strife the retailer has contended with in recent months, Lumber Liquidators has a class action suit on its hands over its alleged fiscal misrepresentations.

At least two law firms have filed a securities class action lawsuit on behalf of those who purchased shares of Lumber Liquidators common stock between Nov. 25, 2013 and July 9, 2014.

The suit alleges that Lumber Liquidators deliberately misled investors via press releases, financial statements, SEC filings and statements made during investor conference calls that its new quality control measures would have no impact on its supply chain or sales, but rather, that its revenue and earnings were expected to grow.

The complaint posits that Lumber Liquidators stock was trading at artificially high prices as a result, which did not compute with the lower-than-expected quarterly results announced on July 9. The retailer stated that weaker-than-projected customer traffic contributed to the shortfall.

The action was filed in the U.S. District Court for the Eastern District of Virginia and references violations of the Securities Exchange Act of 1934.

UPDATE: Lumber Liquidators issued the following statement in response to HCN's request for comment:

"Lumber Liquidators does not comment on pending or in-progress litigation of this nature."