James Hardie(US:JHX) Prnewswire·2025-11-26 13:50Core Viewpoint - James Hardie Industries plc is facing significant legal and financial challenges following a 34% drop in share price attributed to alleged securities fraud related to misleading statements about inventory levels and customer demand in its North American segment [2][8]. Company Developments - The company announced the departure of its CFO, Rachel Wilson, on November 17, 2025, with Ryan Lada appointed as her replacement [1]. - The North America Fiber Cement segment, which accounts for approximately 80% of the company's total earnings, is at the center of the allegations [5]. Legal Issues - A class-action lawsuit has been filed against James Hardie and certain executives, claiming violations of the Securities Exchange Act of 1934 due to misleading statements made between May 20, 2025, and August 18, 2025 [4]. - The lawsuit alleges that management denied significant inventory destocking trends and misrepresented customer demand, which led to inflated sales figures [6][7]. Financial Impact - Following the disclosure of a 12% decline in sales in the North America Fiber Cement division, the company's stock price fell sharply, resulting in substantial losses for investors [7][8]. - The lawsuit seeks damages for the financial injuries suffered by investors due to the alleged wrongful acts during the class period [8]. Investigation - Hagens Berman is actively investigating the claims against James Hardie, focusing on whether sales were driven by unsustainable practices and if senior management was aware of the issues [9].