|[August 19, 2013]
Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of Furniture Brands International, Inc.
BENSALEM, Pa. --(Business Wire)--
Law Offices of Howard G. Smith announces that it is investigating
potential claims on behalf of purchasers of the securities of Furniture
Brands International, Inc. ("Furniture Brands" or the "Company")
(NYSE:FBN) concerning possible violations of federal securities laws.
The investigation focuses on certain statements issued by Furniture
Brands between February 13, 2013 and August 5, 2013.
Furniture Brands engages in designing, manufacturing, sourcing and
retailing home furnishings in the United States and internationally. The
Company's trade names include, among others, Thomasville, Broyhill,
Lane, Drexel Heritage, and Henredon. The Company carries its trade names
on its books as assets, which are tested annually for impairment by
comparing the carrying value and fair value of each trade name to
determine the amount, if any, of impairment. According to the Company's
annual report for fiscl year 2012, filed March 6, 2013 with the
Securities and Exchange Commission on Form 10-K, "lower sales trends,
decreases in projected net sales, decreases in royalty rates, or
increases in the discount rate would cause impairment charges and a
corresponding reduction in our earnings and net worth."
The investigation is related to allegations that the Company overstated
the value of its trade name. On August 6, 2013 Furniture Brands issued a
press release announcing its financial results for the second quarter of
2013, including $10.8 million of asset impairment charges related to
trade name impairments. Following this news, Furniture Brands shares
declined $0.84 per share, or more than 38% from the previous day's
closing price, to close on August 6, 2013, at $1.37 per share, on
unusually heavy trading volume.
If you purchased Furniture Brands shares, if you have information or
would like to learn more about these claims, or if you purchased
Furniture Brands shares prior to February 13, 2013 and have any
questions concerning this announcement or your rights or interests with
respect to these matters, please contact Howard G. Smith, Esquire, of
Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem,
Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888)
638-4847, or by email to firstname.lastname@example.org,
or visit our website at www.howardsmithlaw.com.
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