Core Viewpoint - A class-action lawsuit has been filed against James Hardie Industries plc, alleging securities fraud related to misleading statements about inventory levels and customer demand in its North American segment [1][3][5]. Group 1: Lawsuit Details - The lawsuit, titled Laborers' District Council & Contractors' Pension Fund of Ohio v. James Hardie Industries PLC, covers a class period from May 20, 2025, to August 18, 2025, and seeks damages for violations of the Securities Exchange Act of 1934 [2][4]. - The lead plaintiff deadline is set for December 23, 2025, and the lawsuit is filed on behalf of all investors who purchased James Hardie common stock during the specified class period [2]. Group 2: Allegations Against the Company - The complaint centers on the North America Fiber Cement segment, which accounts for approximately 80% of James Hardie's total earnings [3]. - Plaintiffs allege that management denied significant inventory destocking trends observed in April and May 2025, misleading investors about the segment's strength [3][4]. - Executives allegedly made false statements around May 20 and 21, 2025, claiming robust customer demand while denying inventory destocking, which concealed underlying sales issues [4]. Group 3: Impact of the Allegations - On August 19, 2025, James Hardie disclosed a 12% decline in sales for the North America Fiber Cement division, attributing it to the customer destocking previously denied [5]. - Following this disclosure, the company's stock price fell by over 34%, leading to significant losses for investors [6]. - The lawsuit aims to recover damages for investors who suffered financial injuries due to the alleged wrongful acts during the class period [6].

Core Viewpoint - James Hardie Industries plc is facing a class action lawsuit for securities fraud, with allegations of false and misleading statements regarding its business performance, particularly in the North America Fiber Cement sector [5]. Summary by Sections Class Action Lawsuit - The Schall Law Firm is leading a class action lawsuit against James Hardie Industries plc for violations of the Securities Exchange Act of 1934 [1]. - Investors who purchased securities between May 20, 2025, and August 18, 2025, are encouraged to contact the firm before December 23, 2025 [2]. Allegations and Company Performance - The lawsuit claims that James Hardie made false statements about strong demand and normal inventory levels, despite knowing about weakening demand due to distributors destocking their inventory by early May 2025 [5]. - The company reported a 12% sales decline in its North America Fiber Cement business on August 19, 2025, attributing it to "normalization of channel inventories," which the lawsuit argues was misleading [5].

Core Viewpoint - The article highlights James Hardie (JHX) as a recommended growth stock based on its strong growth metrics and favorable Zacks Rank, indicating potential for solid returns for growth investors [2][10]. Earnings Growth - James Hardie has a historical EPS growth rate of 17.5%, with projected EPS growth of 14.6% this year, significantly outperforming the industry average of 6.6% [5][4]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 14.7%, which is substantially higher than the industry average of 3.5% [6]. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 20.7%, compared to the industry average of 10.1% [7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for James Hardie, with the current-year earnings estimates increasing by 0.8% over the past month [8]. Overall Assessment - James Hardie holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating it is a solid choice for growth investors and a potential outperformer in the market [10].