Company name Armstrong Flooring, Inc.
Stock symbol AFI
Class period March 6, 2018 to November 4, 3019
Lead plaintiff deadline January 14, 2020
Court Central District of California
Status Class Action Complaint Filed

NEW YORK, January 13, 2020 –  Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased Armstrong Flooring, Inc  (NASDAQ: AFI) securities between March 6, 2018 and November 4, 2019 (the “Class Period”). Investors have until January 14, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

On May 3, 2019, Armstrong Flooring’s Chief Executive Officer abruptly resigned.

On this news, the Company’s stock price fell $1.75, nearly 12%, to close at $13.14 per share on May 3, 2019.

Then, on November 5, 2019, Armstrong Flooring reported $165.6 million net sales for third quarter 2019, a nearly 21% decline year-over-year, and a net loss of $31.4 million. The Company also cut its full year 2019 guidance for adjusted EBITDA to a range of $20 million to $25 million, from prior guidance range of $46 million to $54 million, citing “larger distributor movements on inventory” than anticipated.

On this news, the Company’s stock price fell $2.90 per share, or nearly 44%, to close at $3.70 per share on November 5, 2019.

The complaint, filed on November 15, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that the Company had engaged in channel stuffing to artificially boost sales; (2) that the Company’s internal control over inventory levels was not effective; and (3) 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.

If you purchased Armstrong Flooring securities during the Class Period,  are a long-term stockholder, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.

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The submission of this form does not create an attorney-client relationship, nor any obligation on the part of Bragar Eagel & Squire, P.C., or you to file a legal action. Any information you submit will be maintained as confidential. If Bragar Eagel & Squire, P.C., in its sole discretion, believes that you might be an appropriate class representative, Bragar Eagel & Squire, P.C., will contact you to discuss the matter and to determine whether to establish an attorney client relationship.