JELD-WEN Holding, Inc. (NYSE: JELD) Investor Securities Class Action Lawsuit 02/19/2020

If you purchased a significant amount of shares of JELD-WEN Holding, Inc. (NYSE: JELD) between January 26, 2017 and October 15, 2018, and / or if you purchased any NYSE: JELD shares prior to January 2017 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 20, 2020. NYSE: JELD investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
JELD-WEN
Case Name: 
JELD-WEN Shareholder Class Action Lawsuit 02/19/2020
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: JELD
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/19/2020
Class Period Begin: 
01/26/2017
Class Period End: 
10/15/2018
Court of Filing: 
U.S. District Court for the Eastern District of Virginia
Deadline To File for Lead: 
04/20/2020
Summary: 

An investor in shares of JELD-WEN Holding, Inc. (NYSE: JELD) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia over alleged violations of Federal Securities Laws by JELD-WEN Holding, Inc. in connection with certain allegedly false and misleading statements made between January 26, 2017 and October 15, 2018.

Charlotte, NC based JELD-WEN Holding, Inc. manufactures and sells doors and windows primarily in North America, Europe, and Australasia. JELD-WEN Holding, Inc. went public in Janaury 2017. Shares of JELD-WEN Holding, Inc. (NYSE: JELD) reached as high as $42.27 per share in early 2018. Among the Company's "highest volume products" are interior molded doors, which are produced by joining two door skins between a wood frame filled with a hollow or solid core. Door skins are the principal component of interior molded doors, accounting for up to 70% of the cost to manufacture a molded door.

The claims asserted in this case arise from Jeld-Wen's role in a scheme to collude with one of its major competitors, Masonite Corporation ("Masonite"), to fix prices of interior molded doors and door skins.

On February 15, 2018, a jury in a lawsuit brought by one of Jeld-Wen's customers, Steves and Sons, Inc., found that Jeld-Wen violated federal antitrust laws by conspiring with Masonite to manipulate the price of door skins and awarded Steves over $58 million in damages, which, when trebled, totaled more than $175 million. However, Defendants continued to conceal the true extent of Jeld-Wen's misconduct and the financial impact it had on the Company's business, including by continuing to assure investors that it participated in a highly competitive market. Then, on August 7, 2018, J.P. Morgan slashed estimates for Jeld-Wen's earnings in 2018 and 2019 and lowered its price target for Jeld-Wen's stock based, in part, on liability from the "ongoing Steves and Sons litigation." Months later, on October 5, 2018, the court in the Steves litigation ruled that, as part of the resolution of that case, Jeld-Wen would be required to divest one of its door skin manufacturing facilities. Then, on October 15, 2018, Jeld-Wen announced that it would take a $76.5 million charge related to the Steves litigation. That same day, the Company also announced the sudden resignation of its CFO, defendant L. Brooks Mallard. As a result of these disclosures, the price of Jeld-Wen's common stock declined precipitously.

Shares of JELD-WEN Holding, Inc. (NYSE: JELD) declined from over $40 per share in early 2018 to as low as $13.41 per share in late 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of JELD-WEN Holding, Inc. (NYSE: JELD) common shares between January 26, 2017 and October 15, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between January 26, 2017 and October 15, 2018, Jeld-Wen stated that its products, including doors, compete against those of other manufacturers based on price, and described the market in which the Company sells its doors as "highly competitive", that the Company also repeatedly attributed its strong margins and anticipated margin growth to legitimate business factors, such as "strategic pricing decisions" and an increased emphasis on "pricing optimization", that these and similar statements made by Defendants between January 26, 2017 and October 15, 2018were false and misleading because Defendants knew that Jeld-Wen was engaged in a price-fixing conspiracy, and that as a result of Defendants' misrepresentations, shares of Jeld-Wen's common stock traded at artificially inflated prices between January 26, 2017 and October 15, 2018.