Trex(US:TREX) Globenewswire·2026-01-20 21:32Core Viewpoint - Hagens Berman is investigating Trex Company, Inc. for potential violations of U.S. securities laws, focusing on undisclosed sales practices and inflated sales figures through overstocking its "pro channel" partners while misleading investors about its inventory management strategy [1]. Group 1: Investigation Details - The investigation centers on whether Trex concealed excess inventory buildup at distributors [4]. - Trex's sales growth forecast for 2025 was revised down from +7% to 0% due to disappointing financial results [4][7]. - The company reported Q3 2025 net sales of $285 million, which was 5% below its guidance and represented a sequential decline of approximately 26% [6]. Group 2: Market Impact - Trex's stock experienced a 31% drop on November 5, 2025, resulting in a market cap loss of around $1.5 billion [4]. - The company's announcement of a "muted" fourth quarter and the expectation that pro channel partners would lower their inventories contributed to the stock's decline [7]. Group 3: Management Statements - In August 2025, Trex management claimed that their "level-loading" production strategy would reduce inventory volatility and enhance operational efficiency [5]. - The investigation seeks to determine if Trex was aware of softening demand but continued to push products to meet short-term targets [8]. Group 4: Additional Information - The investigation is open to whistleblowers with non-public information regarding Trex, who may receive rewards under the SEC Whistleblower program [11].