BOSTON--(BUSINESS WIRE)--
Dishman Law Office announces the settlements in the securities and derivative cases filed in the Eastern District of Virginia against Lumber Liquidators Holdings, Inc. (“Lumber Liquidators” or “the Company”) (LL), founder, Thomas Sullivan and its directors and officers have been granted preliminary approval. The final settlement fairness hearings are scheduled for November 17, 2016 to determine whether the proposed settlements are fair, reasonable and adequate and whether negotiated attorneys’ fees should be approved by the Court.
Persons who purchased or acquired Lumber Liquidators stock between February 22, 2012, and February 27, 2015 are settlement class members in the securities action. If the settlement is approved, after attorneys’ fees sought in the amount of $6.175 million and 237,500 shares of Settlement Stock, settlement class members in the securities action will only be entitled to recover approximately $0.67 cash and 0.03 shares of settlement stock per affected share of stock.
If you are an investor who purchased or acquired and held Lumber Liquidators common stock between February 22, 2012, and February 27, 2015, and suffered a loss or would like more information, you may contact Dishman Law at [email protected] to discuss your options.
The board of directors (the “Board”) of Lumber Liquidators including the founder, Thomas Sullivan, is a named Defendant in the derivative and securities actions alleging, among other things, that the directors and officers of the Company breached their fiduciary duties in connection with their failure to oversee the operations of the Company as they relate to the manufacture and sale of their wood laminate products, as well as the import and trade of illegally sourced lumber in violation of the Lacey Act. The securities complaint alleges the unlawful insider selling of tens of millions of dollars of Lumber Liquidators stock by Sullivan and other members of the Board during a time when the Company stock was allegedly inflated due to a failure of the Company and its management to properly disclose the activities of and accurate financial information regarding the Company.
A notice has been issued to record holders and beneficiaries as of July 18, 2016. If the stockholder derivative settlement is granted final approval, such holders will release Thomas Sullivan, the Company’s officers and directors and Lumber Liquidators from any and all further damages and such holders will have no further recourse. The derivative settlement does not provide any independent monetary relief to holders. However, the Plaintiffs’ attorneys are seeking five million dollars in attorneys’ fees.
If you are an investor that was a record holder or beneficial owner of Lumber Liquidators common stock as of July 18, 2016, and suffered a loss or would like more information, you may contact Dishman Law at [email protected] to discuss your options.
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