It's been quite a week for Tile Shop (NASDAQ:TTS). After a fraud accusation from Gotham City Research last Thursday, shares dropped more than 50%, but have since moved higher as major financial firms and some analysts came to the defense of the upstart home-improvement retailer.

For now, shares seem to have found an equilibrium around $16-$17, or about 25% less than where they stood before the short-seller released its thesis. What should investors look for going forward? Fool contributor Jeremy Bowman explains what you need to know about Gotham City's allegation and what investors can expect from Tile Shop in the near future.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Tile Shop Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.