Interface Inc. (TILE) $7.5M Shareholder Settlement

Interface Inc. (TILE) agreed to settle a $7.5M shareholder deal to end claims the company improperly calculated its earnings per share, hurting shareholders after the SEC fined the company $5 million over the inaccurate accounting.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that:

1. Interface had inadequate disclosure controls and procedures and internal control over financial reporting;

2. Interface, inter alia, reported artificially inflated income and earnings per share in 2015 and 2016;

3. Interface and certain of its employees were under investigation by the Securities and Exchange Commission 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

4. as a result, the Company's public statements were materially false and misleading at all relevant times.