The Lovesac Company designs, manufactures, and sells furniture, marketing its products primarily through the lovesac.com website, as well as through showrooms at top-tier malls, lifestyle centers, mobile concierges, kiosks, street locations, and in store pop-up-shops and shopin-shops. The Company also fulfills last mile product delivery services through logistics and transportation carriers.

A recently filed federal securities class action Complaint alleges that The Lovesac Company (NASDAQ: LOVE), via certain of its officers and directors, made materially false and/or misleading statements and/or failed to disclose that: (i) Lovesac did not properly account for last mile shipping and freight expenses; (ii) accordingly, Lovesac's disclosure controls and procedures and internal control over financial reporting were ineffective and deficient; (iii) as a result of all the foregoing, Lovesac overstated its gross profit and operating and net income, as well as understated its shipping and handling costs and accrued freight and shipping expenses, in its previously issued financial statements; (iv) accordingly, Lovesac was likely to restate one or more of its previously issued financial statements; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.

A notice of settlement in the underlying securities class action was filed on June 18, 2024, and on June 20, 2024, the District Court entered an Order staying the case pending submission of consideration of the parties’ proposed settlement.

Current Lovesac shareholders who have held Lovesac shares since on or before June 8, 2022, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.

If you would like to learn more about this matter, you are encouraged to contact us at jgrabar@grabarlaw.com, or call 267-507-6085.