Notice of Filing Securities Class Action against Floor & Decor Holdings, Inc.

SAN DIEGO–(BUSINESS WIRE)–Robbins
Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/flooranddecor/)
today announced that a class action has been commenced on behalf of
purchasers of Floor & Decor (NYSE:FND) common stock during the period
between May 23, 2018 and August 1, 2018, inclusive (the “Class Period”).
This action was filed in the United States District Court for the
Northern District of Georgia and is captioned Taylor v. Floor & Decor
Holdings, Inc., et al.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Floor & Decor common stock during the Class
Period to seek appointment as lead plaintiff. A lead plaintiff acts on
behalf of all other class members in directing the litigation. The lead
plaintiff can select a law firm of its choice. An investor’s ability to
share in any potential future recovery is not dependent upon serving as
lead plaintiff. If you wish to serve as lead plaintiff, you must move
the Court no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights or
interests, please contact plaintiff’s counsel, Darren
Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at djr@rgrdlaw.com. You can
view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/flooranddecor/.

The complaint charges Floor & Decor, two of its executive officers and
certain of the Company’s controlling shareholders with violations of the
Securities Exchange Act of 1934. Floor & Decor describes itself as a
high-growth differentiated multi-channel specialty retailer of hard
surface flooring and related accessories, with warehouse-format stores
across 21 states.

On May 3, 2018, the Company announced its financial results for the
first quarter of fiscal 2018, reporting revenue and earnings results
that beat expectations and increasing the Company’s financial
projections for the remainder of fiscal 2018. On May 23, 2018, the
Company filed a Registration Statement and Prospectus with the SEC for a
secondary offering of 10 million shares of Floor & Decor common stock at
$44.77 per share (the “May 24 Secondary Offering”), raising more than
$400 million for the selling shareholders. The Registration Statement
incorporated the Company’s historical financial performance and growth
prospects and purported to warn investors that there were certain risks
that, “if” they occurred, “could” cause the Company’s financial results
to be adversely affected.

The complaint alleges that during the Class Period, defendants made
false and misleading statements and/or failed to disclose adverse
information regarding Floor & Decor’s business and prospects.
Specifically, each of the statements in the Registration Statement filed
with the SEC regarding the current financial condition of the Company
was materially false and misleading because, prior to the May 24
Secondary Offering, defendants knew, but failed to disclose, that the
Company had already begun to experience declining sales trends that
would ultimately result in the reduction of its fiscal 2018 sales and
adjusted earnings per share guidance, which had been increased as
recently as May 2018. As a result of this adverse information being
withheld from the market, the price of the Company’s stock was
artificially inflated during the Class Period, allowing Company insiders
to sell more than 10.3 million shares of Floor & Decor common stock,
including the shares sold in the May 24 Secondary Offering, for proceeds
of more than $466 million.

Then on August 2, 2018, before the market opened, Floor & Decor
announced its financial results for the second quarter of 2018. The
second quarter results were in sharp contrast to the assurances made on
May 3, 2018 about the strength of the Company’s business and its
continuing growth trajectory for the remainder of 2018. As a result of
these disclosures and the significant reduction in the Company’s fiscal
year 2018 sales and earnings per share guidance, Floor & Decor’s stock
price declined more than 21%, from a close of $47.71 per share on August
1, 2018 to a close of $37.50 per share on August 3, 2018.

Plaintiff seeks to recover damages on behalf of all purchasers of Floor
& Decor common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.

Contacts

Robbins Geller Rudman & Dowd LLP
Darren J. Robbins, 800-449-4900
djr@rgrdlaw.com