RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been against Hayward Holdings, Inc. (“Hayward”) (NASDAQ: HAYW). The action charges Hayward Holdings with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Hayward’s materially misleading statements and omissions to the public, Hayward’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: OCTOBER 2, 2023
CLASS PERIOD: MARCH 2, 2022 THROUGH JULY 27, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
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HAYWARD’S ALLEGED MISCONDUCT
During the Class Period, Hayward management continued to represent to investors that the company was experiencing record-setting demand. For example, on March 2, 2022 – the first day of the Class Period – Hayward issued a press release hailing the company’s “Record Net Sales” for the year which purportedly had increased “60% year-over-year to $1,401.8 million.” Defendant Holleran was quoted in the release as stating: “‘We continue to benefit from key secular tailwinds within our industry and with our leading product portfolio and technology we were able to enhance our market share at improved profitability levels’” and “‘are entering 2022 with significant momentum.’”
The complaint alleges that these and similar representations were materially false and misleading when made. Unbeknownst to investors, defendants had engaged in a channel-stuffing scheme in order to artificially inflate the company’s revenues and create the appearance of demand that far exceeded actual demand trends.
On July 28, 2022, Hayward shocked the market when it announced financial results for the second fiscal quarter of 2022. In the report, Hayward disclosed that the company was expecting its channel partners to reduce their inventory on hand by approximately four to six weeks in the second half of 2022. As a result, Hayward reduced its 2022 guidance to reflect a massive inventory reduction in the second half of the year. Additionally, during an earnings call held that same day, Hayward’s CEO admitted that the inventory bottleneck traced back to inventory decisions made “at the end of 2021.”
Following this news, the price of Hayward’s common stock declined $3.23 per share, or approximately 23.5%, to close at $10.48 per share on July 29, 2022.
WHAT CAN I DO?
Hayward investors may, no later than October 2, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Hayward investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Hayward, City of Southfield Fire and Police Retirement System v. Hayward Holdings, Inc., et al., Case No. 23-cv-04146, is filed in the United States District Court for the District of New Jersey before the Honorable William J. Martini.
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WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.