Sleep Number Update
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Sleep Number To Contact Him Directly To Discuss Their Options
NEW YORK - ( NewMediaWire ) - January 02, 2022 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Sleep Number Corporation (“Sleep Number” or the “Company”) (NASDAQ: SNBR) and reminds investors of the February 14, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Sleep Number stock or options between February 18, 2021 and July 20, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292or 212-983-9330(Ext. 1310). You may also click here for additional information: www.faruqilaw.com/SNBR.
There is no cost or obligation to you.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Sleep Number had suffered a severe disruption in its supply chain for foam as a result of Winter Storm Uri; (2) Sleep Number did not have in place the supply chain flexibility, redundancies, and fail-safes, as had been represented to investors, sufficient to offset the foam supply disruption caused by Winter Storm Uri; (3) because foam was a necessary component for Sleep Number’s production of its primary mattress products, Sleep Number’s ability to timely fulfill customer orders had been materially impaired; (4) thus, Sleep Number was unable to meet surging customer demand for Sleep Number’s products; and (5) that, as a result, Sleep Number had been forced to delay mattress shipments to end consumers, pushing millions of dollars’ worth of sales into subsequent quarters and negatively impacting Sleep Number’s financial results.
On April 21, 2021, Sleep Number revealed that Sleep Number had missed consensus sales estimates for the first fiscal quarter ended March 31, 2021 as a result of significant supply chain disruptions. Specifically, Sleep Number disclosed that Sleep Number had “more than $50 million of deliveries (two weeks) shifted out of the quarter due to temporary foam supply constraints,” representing nearly 9% of Sleep Number’s entire sales for the quarter.
On this news, the price of Sleep Number stock fell by nearly 12%, $14.80 and closed at $110.13.
Then, on July 20, 2021, Sleep Number revealed that Sleep Number had missed consensus estimates on the top and bottom line for the second fiscal quarter ended June 30, 2021 and again blamed the disappointing results in significant part on “near-term supply constraints” and component shortages.
On this news, the price of Sleep Number stock fell by nearly 13%, $14.46 and closed at $97.78 further damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Sleep Number’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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