SAN DIEGO and CARY, N.C., June 4, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Ply Gem Holdings, Inc. (NYSE: PGEM) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Act of 1933 in connection with the company's May 22, 2013 initial public offering (the "IPO"). Ply Gem manufactures and sells residential and commercial building products in the United States and Canada.
Ply Gem Is Accused of Failing to Disclose Material Facts in Its Registration Statement
According to the complaint, as of May 19, 2014, shares of Ply Gem fell nearly 50% since the company's IPO on May 22, 2013. The complaint alleges that Ply Gem's Registration Statement, filed in connection with the IPO, was materially inaccurate as it contained untrue statements of material fact and failed to disclose other required material information. Specifically, the Registration Statement failed to disclose that Ply Gem entered into a supply agreement with Home Depot which required the company to sell Home Depot a large volume of products at lower price and lower-margin. In addition, the supply agreement required that Ply Gem buy back certain inventory from Home Depot.
The complaint further alleges that Ply Gem failed to disclose to investors that: (i) the company was experiencing labor inefficiencies and other costs related to the supply agreement with Home Depot; (ii) demand for Ply Gem's siding products was down in April and May 2013 in part because of high customer inventory at the end of the first quarter; and (iii) as a result, Ply Gem shares have declined substantially since the IPO.
Ply Gem Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Ply Gem and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/ply-gem-holdings-inc
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP