Why Shares of Mohawk Industries Are Falling Today

Shares of Mohawk Industries (NYSE: MHK) fell more than 20.43% as of 11:30 a.m. on Thursday morning as Wall Street analysts weigh in on allegations of fraud at the carpeting and flooring manufacturer. The analysts are not taking the charges lightly and are advising investors to do the same.

In January, the Public Employees' Retirement System of Mississippi filed a lawsuit claiming accounting fraud at Mohawk. The suit did not get a lot of attention at the time, but new filings submitted in late June add significant details about the allegations and have gotten Wall Street's attention.

According to analysts, the filing includes testimony from a former Mohawk employee who claims the company has used fictitious sales to artificially boost revenue since 2017.

Source Fool.com