NEW YORK, Feb. 20, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Jeld-Wen Holding, Inc. (“Jeld-Wen” or the “Company”) (NYSE: JELD) in the United States District Court for the Eastern District of Virginia on behalf of those who purchased or acquired the securities of Jeld-Wen between January 26, 2017 and October 15, 2018, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Jeld-Wen investors under the federal securities laws.
The Complaint alleges that Defendants repeatedly attributed its strong margins and anticipated margin growth to legitimate business factors, such as “strategic pricing decisions” and an increased emphasis on “pricing optimization.” These and similar statements made by Defendants during the Class Period were false and misleading because Defendants knew that Jeld-Wen was engaged in a price-fixing conspiracy. As a result of Defendants’ misrepresentations, shares of Jeld-Wen’s common stock traded at artificially inflated prices throughout the Class Period.
On February 15, 2018, a jury in a lawsuit brought by one of Jeld-Wen’s customers, Steves and Sons, Inc., found that Jeld-Wen violated federal antitrust laws by conspiring with Masonite to manipulate the price of door skins and awarded Steves over $58 million in damages, which, when trebled, totaled more than $175 million. However, Defendants continued to conceal the true extent of Jeld-Wen’s misconduct and the financial impact it had on the Company’s business, including by continuing to assure investors that it participated in a highly competitive market. Then, on August 7, 2018, J.P. Morgan slashed estimates for Jeld-Wen’s earnings in 2018 and 2019 and lowered its price target for Jeld-Wen’s stock based, in part, on liability from the “ongoing Steves and Sons litigation.” Months later, on October 5, 2018, the court in the Steves litigation ruled that, as part of the resolution of that case, Jeld-Wen would be required to divest one of its door skin manufacturing facilities. Then, on October 15, 2018, Jeld-Wen announced that it would take a $76.5 million charge related to the Steves litigation. That same day, the Company also announced the sudden resignation of its CFO, defendant L. Brooks Mallard. As a result of these disclosures, the price of Jeld-Wen's common stock declined precipitously.
Investors who purchased or otherwise acquired shares of Spirit during the Class Period should contact the Firm prior to the April 20, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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