WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company, Inc. (NYSE: TREX), the nation’s leading manufacturer and distributor of wood alternative decking, railing, fencing and trim, announced that on March 15, 2010, the U.S. District Court for the Northern District of California granted final approval to the settlement of a class action suit filed in California by a group of plaintiffs’ class action law firms alleging certain product defects.
In the suit, two customers of Trex decking product alleged that their decks suffered from surface flaking and that Trex failed to provide adequate remedies. In 2007, Trex fully and publicly disclosed that a manufacturing problem affected a small percentage of product manufactured in its Fernley, Nevada plant beginning in 2003. This issue was entirely isolated to parts of the West Coast, only affected a small percentage of Trex decking materials produced in the Nevada plant, and has since been remediated. Under the settlement, Trex will continue to fully honor its warranty by replacing product, and also will provide partial reimbursement of labor expenses to affected consumers, the amount of which will be dependent on the size of the deck. The claim resolution process is described in the Settlement Agreement and class notice.
Ronald Kaplan, president and CEO of Trex Company, stated, “We are pleased to have a final resolution of this matter on terms that we have always believed are a win-win for both Trex and our consumers.”
Subject to any appeal, such approval shall be binding 30 days after March 16, 2010.
About Trex Company
Trex Company is the nation’s largest manufacturer of composite decking, railing, fencing and trim, with over 15 years of product experience. Built on “green” principles and values, Trex makes its products from a unique formulation of reclaimed wood and plastic, combined through a proprietary process. Trex decking, railing, fencing and trim offer significant design flexibility with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. In addition, Trex distributes ultra-low maintenance PVC decking under the trademark Trex Escapes® and PVC trim under the trademark Trex Trim™. For more information, visit the Company’s website, www.trex.com. Trex®, Trex Escapes® and Trex Trim™ are trademarks of Trex Company, Inc., Winchester, Va.
The statements in this press release regarding the Company's expected future performance and condition and its business strategy constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include the extent of market acceptance of the Company's products; the sensitivity of the Company's business to general economic conditions; the Company's ability to obtain raw materials at acceptable prices; the Company's ability to maintain product quality and product performance at an acceptable cost; the level of expenses associated with product replacement and consumer relations expenses related to product quality; and the highly competitive markets in which the Company operates. The Company's report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2010 discusses some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.