Investors’ Lawsuit Accuses Furniture Brands Of Hiding Financial Problems
A report on class-action lawsuits by Stanford Law School is mentioned by the Winston-Salem Journal regarding its findings that a larger percentage of class-action lawsuits are being dimissed compared to previous years.
Furniture Brands International Inc. is facing a class-action lawsuit from investors who accuse the company and its management of deliberately misleading them about its financial status prior to entering Chapter 11 bankruptcy protection Sept. 9.
The lawsuit was filed in the Eastern District of Missouri for the U.S. District Court. It was filed against the company; Ralph Scozzafava, its chairman and chief executive; and Vance Johnston, its chief financial officer.
According to a July 24 report on class-action lawsuits by Cornerstone Research and Stanford Law School, “a larger percentage of cases are being dismissed compared with previous years.” Dismissals have risen from 50 percent in 2008 to 53 percent in 2009 and 56 percent in 2010.