BOSTON, Dec. 01, 2020 (GLOBE NEWSWIRE) -- On September 28, 2020, Interface, Inc. (NASDAQ: TILE) announced the conclusion of the long-awaited investigation by the U.S. Securities and Exchange Commission into Interface’s historical quarterly earnings per share calculations and rounding practices. Interface agreed to pay a $5 million fine to resolve the matter, and was ordered to cease-and-desist from violating the federal securities laws. On this news, shares of Interface common stock fell precipitously.
According to the Wall Street Journal, the SEC had charged Interface for reporting earnings that did not comply with the Generally Accepted Accounting Principles for multiple quarters in 2015 and 2016. Interface allegedly made unsupported, manual accounting adjustments, often when internal forecasts indicated the Company would fall short of Wall Street estimates, the SEC found. Per the SEC, Interface would then report earnings that met or exceeded those consensus estimates. In addition to the Company’s $5 million fine, two of Interface’s former executives agreed to pay penalties of $45,000 and $70,000.
A lawsuit alleging violations of federal securities laws has been filed against Interface and certain of its officers and directors. The suit alleges that beginning in March 2018, Interface misled investors by, among other things, reporting artificially inflated income and earnings per share in 2015 and 2016, failing to disclose and/or downplaying that Interface and certain of its employees were under investigation by the SEC, and having inadequate disclosure controls and procedures and internal controls over financial reporting. The lawsuit was filed in the U.S. District Court for the Eastern District of New York, and is captioned Swanson v. Interface, Inc., et al., No. 20-cv-5518.
If you purchased or acquired shares of Interface between March 2, 2018 and September 28, 2020, and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at firstname.lastname@example.org, or at https://www.blockleviton.com/cases/tile. The deadline to move the Court to be appointed lead plaintiff is January 11, 2021.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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