San Diego, CA -- (ReleaseWire) -- 05/27/2014 -- An investor, who purchased shares of Ply Gem Holdings Inc (NYSE:PGEM), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Ply Gem Holdings Inc in connection with certain allegedly false and misleading statements.
If you purchased shares of Ply Gem Holdings Inc (NYSE:PGEM), you have certain options and for certain investors are short and strict deadlines running. Deadline: July 18, 2014. NYSE:PGEM investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
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 the Company’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’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’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 initially sell Home Depot 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, that 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 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’s business affairs as required pursuant to the instructions of Form S-1.
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, NYSE:PGEM shares closed at $11.84 per share.
Those who purchased shares of Ply Gem Holdings Inc (NYSE:PGEM) have certain options and should contact the Shareholders Foundation.
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