SAN DIEGO & CHARLOTTE, N.C.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that a purchaser of JELD-WEN Holding, Inc. (NYSE: JELD) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between January 26, 2017 and October 15, 2018. Jeld-Wen manufactures and sells doors and windows.
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JELD-WEN Holding, Inc. (JELD) Accused of Concealing Collusive Pricing Strategy
According to the complaint, Jeld-Wen held multiple stock offerings in which the offering materials touted the Company's financial results and outlook. However, the statements proved to be false. The complaint alleges that beginning in 2012, Jeld-Wen engaged in price fixing with Masonite International Corporation, giving the two companies control of 85% of the market for interior molded doors. In June 2014, Jeld-Wen touted that it had implemented a new pricing strategy that emphasized "pricing optimization" to increase product profitability, which included raising its prices in its supply agreements with independent door manufacturers when Masonite suddenly stopped selling molded doors. Consequently, an independent door manufacturer filed a lawsuit against Jeld-Wen. On February 15, 2018, a jury found Jeld-Wen guilty of violations of U.S. antitrust laws and awarded the plaintiff treble damages totaling approximately $174 million. The judge also ordered the divestiture of a door skin facility Jeld-Wen had acquired as part of a prior acquisition. As a result, on October 15, 2018, Jeld-Wen revealed that the Company expected its third quarter 2018 financial results to include a $76.5 million charge related to the pending litigation. On this news, Jeld-Wen's stock price declined 19% to close at $17.28 per share and has yet to recover to its class period high.
JELD-WEN Holding, Inc. (JELD) Shareholders Have Legal Options
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