New York, New York–(Newsfile Corp. – April 18, 2020) – Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in JELD-WEN Holding, Inc. (NYSE: JELD) (“Jeld-Wen” or the “Company”) of the April 20, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in JELD-WEN stock or options between January 26, 2017 and October 15, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/JELD. There is no cost or obligation to you.
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 [email protected].
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of all those who purchased Jeld-Wen common stock between January 26, 2017 and October 15, 2018 (the “Class Period”). The case, Cambridge Retirement System v. Jeld-Wen Holding, Inc. et al., No. 3:20-cv-00112 was filed on February 19, 2020, and has been assigned to Judge John A. Gibney, Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and or failing to disclose that: (1) Jeld-Wen products, including doors, compete against other manufacturers on price, and described the market in which the Company sells its doors as “highly competitive”; (2) Jeld-Wen’s strong margins and anticipated margin growth were attributed to legitimate business factors, such as “making strategic pricing decisions based on an analysis of customer and product level profitability” and increasing its emphasis on “pricing optimization”; (3) 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 with another door manufacturer to artificially increase or maintain prices of interior molded doors; and (4) consequently, Jeld-Wen common stock traded at artificially inflated prices throughout the Class Period.
On August 7, 2018, a veteran industry analyst at J.P. Morgan slashed his estimates for Jeld-Wen’s earnings in 2018 and 2019 and lowered his December 2018 price target for Jeld-Wen’s stock, based, in part, on the “ongoing Steves and Sons litigation.”
On this news, the Company’s stock price fell from $26.33 per share on August 7, 2018 to $23.71 per share on August 8, 2018: a $2.62 or 9.96% drop.
Then, on October 5, 2018, the Judge presiding over the Steves Litigation ruled that as part of the resolution of that case, Jeld-Wen would be required to divest the Towanda, Pennsylvania door skin facility the Company had obtained as part of its acquisition of CMI. This disclosure caused several securities analysts to downgrade Jeld-Wen stock over the ensuing trading days, with analysts at Baird noting that the divestiture is “among the worst case scenarios.” Analysts at RBC Capital Markets commented that up to 33% of Jeld-Wen’s global door skin manufacturing capacity would be lost by the divestiture of the Towanda plant.
On this news, the Company’s stock price fell, over the following three trading sessions, from $24.09 per share on October 5, 2018 to $22.91 per share on October 9, 2018: a $1.18 or 4.90% drop.
Finally, on October 15, 2018, after the market closed, Jeld-Wen announced that the Company expected its third quarter 2018 financial results to include a $76.5 million charge related to the ongoing Steves Litigation, and reflected the judgment anticipated to be entered against Jeld-Wen, as recent rulings in the case “now provided sufficient detail for the company to estimate future liabilities if the appeal process is unsuccessful.” The Company also announced the sudden resignation of its CFO, Defendant Mallard.
On this news, the Company’s stock price fell from $21.31 per share on October 15, 2018 to $17.28 per share on October 16, 2018: a $3.03 or 18.91% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Jeld-Wen’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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