November 12, 2020 - An investor in shares of Interface, Inc. (NASDAQ: TILE) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Interface, Inc. in connection with certain allegedly false and misleading statements made between March 2, 2018 and September 28, 2020.

Atlanta, GA based Interface, Inc., a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. Interface, Inc. reported that its annual Total Revenue rose from $996.44 million in 2017 to over $1.17 billion in 2018 and that its Net Income declined from $53.24 million in 2017 to $50.25 million in 2018.

On April 24, 2019, Interface, Inc filed a current report on Form 8-K with the SEC, disclosing, inter alia, that Interface received a letter in November 2017 from the [SEC] requesting that the Company voluntarily provide information and documents in connection with an investigation into the Company's historical quarterly [EPS] calculations and rounding practices during the period 2014-2017 ; that [t]he Company subsequently received subpoenas from the SEC in February 2018, July 2018 and April 2019 requesting additional documents and information ; and that [i]n the fourth quarter of 2018, the Company conducted at the SEC's request an internal investigation into these and other related issues for seven quarters in 2015, 2016 and 2017.

On January 21, 2020, Interface, Inc. announced the termination of its Chief Executive Officer and President Jay Gould “after an investigation concluded that he engaged in personal behavior that violated Company policy and core values.”

On September 28, 2020, I Interface, Inc announced the conclusion of the U.S. Securities and Exchange Commission's investigation 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 Interface's stock price fell sharply, damaging investors.

According to the complaint the plaintiff alleges on behalf of purchasers of Interface, Inc. (NASDAQ: TILE) common shares between March 2, 2018 and September 28, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 2, 2018 and September 28, 2020, the defendants made false and/or misleading statements and/or failed to disclose that Interface had inadequate disclosure controls and procedures and internal control over financial reporting, that consequently, Interface, inter alia, reported artificially inflated income and earnings per share ( EPS ) in 2015 and 2016, that Interface and certain of its employees were under investigation by the Securities and Exchange Commission ( SEC ) with respect to the foregoing issues since at least as early as November 2017, had impeded the SEC's investigation, and downplayed the true scope of the Company's wrongdoing and liability with respect to the SEC investigation, and that as a result, the Company's public statements were materially false and misleading at all relevant times.