After shares of Timberland Company (TBL) dropped more than 25% an investigation on behalf of investors of The Timberland Company (NYSE:TBL) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm concerns on whether the Timberland Company has violated federal securities laws by issuing false and misleading statements to its shareholders.

The Timberland Company reported over the past four annual filing periods consistent 12months Total Revenue ranging from $1.285billion to $1.436billion. In fact The Timberland Company reported an increase in its 12months Total Revenue from $1.285billion in 2009 to $1.429billion in 2010. Its Net Income rose over the past four filing periods from $40million in 2007 to $96.62million in 2010.

Shares of The Timberland Company (NYSE:TBL) rose from as low as $8.45 during 2008 to over $45 in April 2011.

Then Shares of Timberland plunged 26%, or almost $11.00 per share on May 5, 2011, after The Timberland Company reported its First Quarter 2011 Results., The Timberland Company revealed that profit declined 30% during the quarter because of significantly higher labor and investment costs. According to the Timberland Company statement, profit fell to $18 million, or 35 cents a share, compared to analysts consensus estimates of 59 cents. In addition, reported gross margin fell 300 basis points.

Shares of the Timberland Company (NYSE:TBL) fell from over $45 in April to under $30 on May 5, 2011.