Leather Retailer Hid Financial Reporting, Investors Say

Law360 (November 8, 2019, 5:22 PM EST) -- A specialty leather retailer and its executives duped investors into buying inflated shares by misleadingly reporting internal expenses and inventory, causing the company's stock price to subsequently tank, according to a proposed class action in California federal court.

The investors, who filed their complaint Thursday, claim that Tandy Leather Factory Inc. — a Texas-based leathercraft distributor operating 114 stores in the U.S., Canada and Europe — miscalculated inventory value to overestimate the company's financial success in multiple statements issued to investors.

The reporting issues first emerged publicly in a report from this August saying that Tandy was investigating "certain aspects of the company's methods of...

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