Ply Gem Holdings Inc (NYSE: PGEM) Investor Securities Class Action Lawsuit 05/19/2014

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Company Name(s): 
Ply Gem Holdings
Case Name: 
Ply Gem Holdings Shareholder Class Action Lawsuit 05/19/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 

March 20, 2018 - The court preliminarily approved the settlement.

March 6, 2018 - Parties filed a stipulation of settlement.

September 23, 2016 - The court granted in part and denied in part defendants' motion to dismiss.

January 13, 2016 - Defendants filed a motion to dismiss.

November 6, 2015 - The lead plaintiff filed a second amended complaint.

September 29, 2015 - The court granted defendants' motion to dismiss with leave to amend.

February 13, 2015 - Defendants filed a motion to dismiss.

December 15, 2014 - The lead plaintiff filed an amended complaint.

October 14, 2014 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

July 18, 2014 - Lead plaintiff motions were filed.

May 19, 2014 - An investor in shares of Ply Gem Holdings Inc (NYSE: PGEM) filed a lawsuit in the U.S. District Court for the Southern District of New York against Ply Gem Holdings Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 22, 2013 to May 19, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of Ply Gem Holdings Inc (NYSE: PGEM) common shares pursuant and/or traceable to Ply Gem Holdings Inc’s May 22, 2013 initial public offering (“IPO”), that the defendants violated the Securities Act of 1933.

On or about May 22, 2013, the SEC declared effective Ply Gem Holdings Inc’s Form S-1 Registration Statement, as amended (the “Registration Statement”) for the IPO. The plaintiff alleges that the Registration Statement, and the documents referenced and incorporated therein, negligently 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 Holdings Inc’s future operating results.

The plaintiff claims that these material events included that Ply Gem Holdings Inc had agreed to buy back certain inventory from The Home Depot Inc (“Home Depot”) as an accommodation related to a new supply agreement between the two companies (the “Supply Agreement, that the Supply Agreement required that Ply Gem Holdings Inc initially sell Home Depot Inc a large volume of lower-priced, lower-margin product, that Ply Gem Holdings Inc was experiencing on-going labor inefficiencies and other ramp-up costs associated with the initial roll out of lower-priced, lower-margin products to Home Depot Inc, that April 2013 was a particularly poor month for Ply Gem Holdings Inc, with management noting that “maybe it wasn’t our worst April in eight years, but it was our worst in a while” and that high customer inventory at the end of the first quarter was adversely affecting the demand for and sales of Ply Gem Holdings Inc’s siding products in April 2013 and May 2013.

Furthermore, the plaintiff claims that the Registration Statement failed to disclose all material risks and changes in Ply Gem Holdings Inc’s business affairs as required pursuant to the instructions of Form S-1.

Ply Gem Holdings Inc reported that its annual Total Revenue rose from over $1.12 billion in 2012 to over $1.36 billion in 2013 while its respective Net Loss increased from $39.05 million to $79.52 million.

On May 14, 2014, Ply Gem Holdings Inc reported its first quarter 2014 results. Among other things, Ply Gem Holdings Inc disclosed that while its first quarter Net sales rose to $269.5 million in 2014 compared to $257.1 million in 2013, its first quarter Net Loss increased from $28.11 million in 2013 to $51.58 million in 2014.

Shares of Ply Gem Holdings Inc (NYSE: PGEM) declined from $23.83 per share in June 2013 to as low as $10.78 per share on May 16, 2014.

On May 22, 2014, Ply Gem Holdings Inc (NYSE: PGEM) shares closed at $11.84 per share.