Updated: August 07, 2017
Status: Ongoing Case
On June 22, 2017, Labaton Sucharow LLP was appointed as lead counsel in a securities class action lawsuit against Tempur Sealy International, Inc. (NYSE: TPX) and certain of its senior executives. The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Tempur Sealy’s securities between September 9, 2016 and January 27, 2017, inclusive (the class period). Tempur Sealy is a mattress and bedding-products company that develops, manufactures, markets, and distributes bedding products and sells them in over 100 countries.
On August 7, 2017, the lead plaintiff filed a consolidated complaint alleging that the defendants made materially false and misleading statements and omissions during the class period by failing to disclose that its negotiations with its most important customer—Mattress Firm Holding Corp.—had deteriorated after Mattress Firm was acquired by Steinhoff International Holdings N.V. This deterioration was driven in part by Tempur Sealy’s aggressive and undisclosed negotiating tactics in the months leading up to Mattress Firm’s acquisition, yet Tempur Sealy concealed the increased material risk that it would ultimately terminate its contracts with Mattress Firm as a result of the terms Mattress Firm was capable of demanding after it was acquired and its bargaining power increased. On January 30, 2017, Tempur Sealy announced that it had lost Mattress Firm as a customer and, as a result, the company’s stock price dropped nearly 32 percent over the next two trading days.
The case is In re Tempur Sealy International, Inc. Securities Litigation, No. 17-cv-2169 (S.D.N.Y.). The lead plaintiff is the Oklahoma Police Pension and Retirement System. The defendants are Tempur Sealy and certain of its senior executives.