James Hardie(US:JHX) Prnewswireยท2025-10-30 12:40Core Viewpoint - A class-action lawsuit has been filed against James Hardie Industries plc, alleging securities fraud related to misleading investors about inventory levels and customer demand in its North American segment [1][12]. Summary by Sections Lawsuit Details - The lawsuit, titled Laborers' District Council & Contractors' Pension Fund of Ohio v. James Hardie Industries PLC., was filed on behalf of investors who purchased James Hardie common stock between May 20, 2025, and August 18, 2025 [3]. - The lawsuit seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 [3]. Allegations of Misleading Information - The action focuses on James Hardie's North America Fiber Cement segment, which accounts for approximately 80% of the company's total earnings [4]. - Plaintiffs allege that management denied significant inventory destocking trends observed in April and May 2025, misleading investors about the segment's strength [4][5]. Impact of Allegations - The complaint highlights that company executives made statements around May 20 and 21, 2025, falsely claiming robust customer demand and denying inventory destocking [5]. - The lawsuit claims that sales were artificially inflated due to "inventory loading by channel partners," indicating potential fraudulent practices [5]. Performance Disclosure - On August 19, 2025, James Hardie disclosed a 12% decline in sales in the North America Fiber Cement division, attributing it to the customer destocking previously denied [6]. - The CEO characterized the downturn as a "normalization of channel inventories," but warned of continued impacts on sales for at least the next two quarters [6]. Market Reaction - Following the disclosure of the decline, James Hardie's stock price fell by over 34%, leading to significant losses for investors [7]. - The lawsuit aims to recover damages for investors who suffered financial injuries due to the alleged wrongful acts during the class period [7]. Investigation by Hagens Berman - Hagens Berman is investigating the claims and is seeking information from investors who may have suffered losses or have knowledge relevant to the investigation [8].