James Hardie(US:JHX) Globenewswireยท2025-11-03 19:11Core 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][2]. Group 1: Lawsuit Details - The lawsuit, filed on behalf of investors who purchased James Hardie common stock between May 20, 2025, and August 18, 2025, seeks damages for violations of the Securities Exchange Act of 1934 [2][3]. - The plaintiffs claim that James Hardie's North America Fiber Cement segment, which generates approximately 80% of the company's total earnings, was misrepresented by management despite signs of inventory destocking [3][4]. Group 2: Allegations of Misrepresentation - Executives allegedly made false statements around May 20 and 21, 2025, claiming robust customer demand while denying any inventory destocking [4][5]. - The complaint suggests that sales were artificially inflated due to "inventory loading by channel partners," indicating potential fraudulent practices [4][5]. Group 3: Impact of Disclosure - On August 19, 2025, James Hardie disclosed a 12% decline in sales for its North America Fiber Cement division, attributing it to the customer destocking previously denied by management [5][6]. - Following this disclosure, the company's stock price fell by over 34%, leading to significant losses for investors [6][7]. Group 4: Investigation and Next Steps - Hagens Berman is investigating the claims and is interested in whether James Hardie's sales practices were unsustainable and if senior management was aware of the issues [7][8]. - The firm encourages investors with substantial losses or relevant information to come forward to assist in the investigation [8][9].