Ply Gem Holdings, Inc. (Nasdaq: PGEM)
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Ply Gem Holdings, Inc. ("Ply Gem" or the "Company") (PGEM) common shares directly on the Company's May 22, 2013 initial public offering (the "IPO"), or on the open market subsequent to the initial offering.
The complaint alleges that the Registration Statement for the IPO, and the documents referenced and incorporated therein, failed to disclose certain material events known to defendants that caused the financial information reported in the Registration Statement not to be indicative of Ply Gem's future operating results. These material events included the fact that Ply Gem had agreed to buy back certain inventory from The Home Depot, Inc. as an accommodation related to a new supply agreement between the two companies and that this agreement required that Ply Gem initially sell Home Depot a large volume of lower-priced, lower-margin product that would adversely affect the mix of future earnings.
This undisclosed relationship had a material adverse effect on Ply Gem's operating results during its second quarter ended June 29, 2013. When disappointing earnings for the second quarter were announced on August 13, 2013, the price of Ply Gem stock closed at $15.26, down $3.66 for the day. On the day of the filing of the lawsuit, Ply Gem common shares traded as low as $10.96 per share, as compared to the $21.00 offering price on the IPO.
If you are a current shareholder and/or purchased stock pursuant to the company's May 22, 2013 initial public offering, or on the open market subsequent to the initial offering. and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.