NEW YORK, NY--(Marketwired - Jun 13, 2014) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Ply Gem Holdings, Inc. ("Ply Gem" or the "Company") (
A complaint has been filed in the Southern District of New York on behalf of all persons who purchased Ply Gem common stock pursuant and/or traceable to the Company's initial public offering on or about May 22, 2013 (the "IPO") (the "Class Period").
The complaint alleges, as set forth below, that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
On or about May 22, 2013, the Securities and Exchange Commission declared effective Ply Gem's Form S-1 Registration Statement, as amended ("Registration Statement") for the IPO. The Complaint alleges that the Registration Statement, and the documents referenced and incorporated therein, negligently failed to disclose certain material events known to defendants that caused the financial information reported in the Registration Statement not to be indicative of Ply Gem's future operating results. These material events included: (i) Ply Gem had agreed to buy back certain inventory from The Home Depot, Inc. ("Home Depot") as an accommodation related to a new supply agreement between the two companies ("Supply Agreement"); (ii) the Supply Agreement required that Ply Gem initially sell Home Depot a large volume of lower-priced, lower-margin product; (iii) Ply Gem was experiencing on-going labor inefficiencies and other ramp-up costs associated with the initial roll out of lower-priced, lower-margin products to Home Depot; (iv) April 2013 was a particularly poor month for the Company, with management noting that "maybe it wasn't our worst April in eight years, but it was our worst in a while"; and (v) high customer inventory at the end of the first quarter was adversely affecting the demand for and sales of Ply Gem's siding products in April 2013 and May 2013. In addition, the Registration Statement failed to disclose all material risks and changes in Ply Gem's business affairs as required pursuant to the instructions of Form S-1.
These known, but undisclosed, events had a material adverse effect on Ply Gem's operating results during its second quarter ended June 29, 2013. At the time of the filing of this lawsuit, Ply Gem common shares trade in a range between $10.50 and $11 a share -- 50% less than the IPO price.
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If you invested in Ply Gem stock or options in connection with the Company's IPO and would like to discuss your legal rights, visit www.faruqilaw.com/PGEM . You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding Ply Gem's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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