Mohawk Industries Revenue Fraud Case Dropped by Pension Funds

A group of union pension funds dropped their bid to investigate an alleged revenue recognition fraud scheme at Mohawk Industries Inc. by inspecting the flooring company’s internal files, according to a Delaware Chancery Court filing.

The May 14 dismissal stipulation doesn’t disclose if the case settled with an agreement by Mohawk to turn over some documents, as records inspection lawsuits often do, or if the pension funds plan to hit the company’s board with the types of fiduciary breach claims that frequently follow records cases.

But the joint nature of the filing, which was signed by attorneys for both sides, ...