Law Firm Opens Securities Investigation Into Sleep Number
The firm says it will probe whether executives made misleading statements after the company reported a sharp earnings shortfall, suspended guidance and engaged Guggenheim to explore strategic and financing options.
Overview
- Wolf Haldenstein Adler Freeman & Herz LLP publicly announced an investigation and is asking Sleep Number shareholders who suffered losses to contact the firm for potential claims.
- The inquiry targets whether Sleep Number and certain officers or directors engaged in securities fraud or other unlawful business practices as alleged in the firm's announcement.
- Sleep Number previously reported a large GAAP loss, missed revenue expectations and suspended financial guidance while hiring Guggenheim Securities to evaluate strategic and financing options.
- The company's disclosure triggered a steep share-price decline that created investor losses cited by the law firm as the basis for possible claims.
- No lawsuits or specific allegations naming individual executives have been filed yet and the firm highlighted its experience prosecuting securities class actions as it gathers shareholder contacts and evidence.