NEW YORK, May 20, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for Southern District of New York on behalf of all persons who purchased or otherwise acquired the securities of Ply Gem Holdings, Inc. ("Ply Gem") (NYSE:PGEM) 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").
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. The Complaint alleges 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 Complaint alleges 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.
If you wish to serve as lead plaintiff, you must move the Court no later than July 18, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
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Source:Gainey McKenna& Egleston