NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/plygem/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of Ply Gem Holdings, Inc. (“Ply Gem”) (NYSE:PGEM) common shares pursuant and/or traceable to the Company’s May 22, 2013 initial public offering (the “IPO”), seeking to pursue remedies under the Securities Act of 1933 (“Securities Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/plygem/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Ply Gem, certain of its officers and directors and the underwriters of the IPO with violations of the Securities Act. Ply Gem is a manufacturer of exterior building products for the residential and commercial construction, do-it-yourself, and professional remodeling and renovation markets, whose products are primarily sold in the United States and Canada.
On or about May 22, 2013, the SEC declared effective Ply Gem’s Form S-1 Registration Statement, as amended (the “Registration Statement”) for the IPO. The complaint 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’s future operating results. These material events included: (i) Ply Gem 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”); (ii) the Supply Agreement required that Ply Gem initially sell Home Depot a large volume of lower-priced, lower-margin product; (iii) Ply Gem 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; (iv) April 2013 was a particularly poor month for the Company, with management noting that “maybe it wasn’t our worst April in eight years, but it was our worst in a while”; and (v) high customer inventory at the end of the first quarter was adversely affecting the demand for and sales of Ply Gem’s siding products in April 2013 and May 2013. In addition, the Registration Statement failed to disclose all material risks and changes in Ply Gem’s business affairs as required pursuant to the instructions of Form S-1.
These known, but undisclosed events had a material adverse effect on Ply Gem’s operating results during its second quarter ended June 29, 2013. At the time of the filing of this lawsuit, Ply Gem common shares trade in a range between $10.50 and $11 a share – 50% less than the IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers of Ply Gem common shares pursuant and/or traceable to the Company’s May 22, 2013 IPO (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action. Please visit http://www.rgrdlaw.com for more information.