Governance & Derivative
Sleep Number Corporation (NasdaqGS: SNBR)
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Sleep Number Corporation (NasdaqGS: SNBR).
Leading up to early 2021, the Company repeatedly touted its vertical integration and robust supply chain, and thus its ability to meet surging customer demand. However, in February 2021, Winter Storm Uri caused widespread damage to the local water and electricity infrastructure in the Gulf Coast of the United States, resulting in a disruption of the supplies of the petrochemical components used in foam manufacture, which was not disclosed by the Company. In April 2021, the Company disclosed that it had missed consensus sales estimates for the quarter because of significant supply chain disruptions, yet still downplayed the future impact of the disruptions. Then in July 2021, the Company again revealed disappointing financial results due in significant part to “near-term supply constraints” and component shortages.
The Company was subsequently sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws, which remains ongoing.
KSF’s investigation is focusing on whether Sleep Number’s officers and/or directors breached their fiduciary duties to the Company’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Sleep Number shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or fill out the form on this page.