November 5, 2013 (Shareholders Foundation) - An investigation on behalf of current long-term stockholders of shares of Flexsteel Industries, Inc. (NASDAQ:FLXS) was announced concerning whether certain Flexsteel Industries officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Flexsteel Industries officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for the Companys Long-Term Incentive Compensation Plan and Omnibus Stock Plan.

In the Proxy Statement filed by Flexsteel Industries, Inc. with the Securities and Exchange Commission the Board of Directors recommends that Flexsteel Industries shareholders vote to approve the Long-Term Incentive Compensation Plan and Omnibus Stock Plan. Under each plan, up to 700,000 shares of common stock are available for distribution.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Flexsteel Industries.

Flexsteel Industries, Inc. reported that its Total Revenue rose from $326.47 million for the 12 months period that ended on June 30, 2010 to $386.19 million for the 12 months period that ended on June 30, 2013 and that its Net Income for the respective time periods increase from $10.80 million to $13.15 million.

Shares of Flexsteel Industries, Inc. (NASDAQ:FLXS) grew from $5.20 per share in March 2009 to as high as $28.10 per share on October 30, 2013.

On November 1, 2013, NASDAQ:FLXS shares closed at $27.27 per share.