Tempur Sealy International, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Tempur Sealy develops, manufactures, and distributes bedding products worldwide. Prior to and during the Class Period, Mattress Firm Holding Corp. (“Mattress Firm”) was the Tempur Sealy’s largest customer and accounted for approximately 25% of Tempur Sealy’s 2015 net sales. The company includes Mattress Firm as one of its “national accounts.” On August 7, 2016, Steinhoff International Holdings NV (“Steinhoff”) agreed to buy Mattress Firm for approximately $2.4 billion.
The Class Period commences on July 28, 2016, when Tempur Sealy issued a press release announcing its financial results for the 2016 fiscal second quarter, the period ending June 30, 2016.
According to the complaint, on January 30, 2017, before the market opened, Tempur Sealy issued a press release announcing that the senior management of Mattress Firm and representatives of Steinhoff notified Tempur Sealy of their intent to terminate all of their contracts with Tempur Sealy in the U.S. if Tempur Sealy did not agree to considerable modifications to their existing agreements, including “significant economic concessions.” The press release further noted that after the parties were unable to reach a resolution on the matter, the company issued formal termination notices to Mattress Firm for all of Tempur Sealy’s brands effective January 27, 2017, and that Tempur Sealy expects to cease doing business with Mattress Firm during the first quarter of 2017.
Following this news, the price of Tempur Sealy common stock fell $20.19 per share over a two-day period, or nearly 32%, on heavy trading volume to close at $43.00 per share on January 31, 2017.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose, among other things: (a) that prior to and during the Class Period, Mattress Firm had been engaged in active negotiations to be acquired and that any such acquisition was reasonably likely to have a material adverse effect in Tempur Sealy’s 2016 third and fourth quarter operating results; (b) that during the Class Period, Tempur Sealy was engaged in active discussions with Mattress Firm concerning modifications to their long-term supply agreements; (c) that Mattress Firm had been seeking significant economic concessions from Tempur Sealy during the Class Period; (d) that, the defendants lacked a reasonable basis for the company’s positive statements associated with Mattress Firm; and (e) that, based on the foregoing, the defendants lacked a reasonable basis for their positive statements about Tempur Sealy’s then-current business and future financial prospects.
If you are a member of the class described above, you may no later than May 23, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will will adequatley represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
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