James Hardie Industries Faces Lawsuit Over Alleged Fraud Claims
Overview of the Class-Action Lawsuit Against James Hardie Industries
A class-action lawsuit has been initiated against James Hardie Industries plc (NYSE: JHX), a leading supplier of fiber cement building materials, asserting that the company engaged in securities fraud. The core of the allegation revolves around misleading statements regarding inventory levels and customer demand associated with its North American operations.
Details of the Allegations
Hagens Berman is currently delving into these claims, inviting investors who may have incurred losses to come forward. The lawsuit, filed on behalf of all individuals who acquired James Hardie common stock during a specified period, aims to seek damages for apparent violations of the Securities Exchange Act.
Key Events During the Class Period
The lawsuit encompasses investors who purchased or acquired shares between specific dates. It emphasizes that approximately 80% of the company's profits derive from its North American Fiber Cement segment. Plaintiffs allege that even though there was a marked decrease in inventory starting in April 2025, the management of James Hardie continued to assure investors that demand remained stable.
Management's Public Statements
Executives at James Hardie reportedly made public statements on May 20 and 21, asserting that customer demand remained strong and denying any issues related to inventory reductions. The complaint argues that these representations masked a troubling reality—that sales increases were largely due to inflated inventory levels manipulated by distribution partners rather than genuine market demand.
Impact of the Lawsuit's Revelations
On August 19, 2025, the company finally admitted to seeing decreased performance, revealing a significant 12% drop in sales within the North America Fiber Cement division. This decline was tied directly to the inventory destocking that had initially been denied. Following these revelations, the stock experienced a dramatic decrease of over 34%, leading to substantial losses for investors.
Investigation Continued by Hagens Berman
Hagens Berman is actively exploring the nature of sales practices at James Hardie to determine if they were indeed based on sustainable consumer demand or if they were artificially supported by dubious sales tactics. Reed Kathrein, a partner at Hagens Berman, is leading this investigation and has reached out to potential investors with specific information regarding the case.
Next Steps for Affected Investors
Investors encounter an opportunity to voice their experiences or recuperate losses they might have sustained. The firm is urging affected individuals to reach out if they have pertinent information that can assist in the process.
Whistleblower Program Information
Further, individuals with non-public knowledge about occurrences at James Hardie may explore options under the SEC's Whistleblower program. This program offers financial incentives to whistleblowers who provide original information leading to successful enforcement actions.
Contact Details for More Information
For those seeking further information or assistance, please contact Reed Kathrein at 844-916-0895 or via email to discuss possible engagements with the ongoing investigation.
Frequently Asked Questions
What is the lawsuit against James Hardie Industries about?
The lawsuit alleges securities fraud due to misleading claims about inventory levels and customer demand, affecting investors.
Who is leading the investigation?
Hagens Berman, a law firm specializing in representing investors, is leading the investigation into the claims against James Hardie.
What was the impact on James Hardie's stock after the allegations?
After revealing the decline in sales and admitting to inventory destocking, James Hardie's stock fell over 34%, significant for shareholders.
Can investors recover losses from this lawsuit?
Yes, the lawsuit seeks damages on behalf of investors who suffered losses during the specified class period.
How can whistleblowers contribute to the investigation?
Whistleblowers providing original information may be eligible for rewards under the SEC's Whistleblower program, which could amount to a percentage of any recovery.
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