NEW YORK, May 28, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Ply Gem Holdings, Inc. ("Ply Gem" or the "Company") (NYSE:PGEM) common shares directly on the Company's May 22, 2013 initial public offering (the "IPO"), or on the open market subsequent to the initial offering.
The complaint alleges that the Registration Statement for the IPO, and the documents referenced and incorporated therein, 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 the fact that Ply Gem had agreed to buy back certain inventory from The Home Depot, Inc. as an accommodation related to a new supply agreement between the two companies and that this agreement required that Ply Gem initially sell Home Depot a large volume of lower-priced, lower-margin product that would adversely affect the mix of future earnings.
This undisclosed relationship had a material adverse effect on Ply Gem's operating results during its second quarter ended June 29, 2013. When disappointing earnings for the second quarter were announced on August 13, 2013, the price of Ply Gem stock closed at $15.26, down $3.66 for the day. On the day of the filing of the lawsuit, Ply Gem common shares traded as low as $10.96 per share, as compared to the $21.00 offering price on the IPO.
Wolf Haldenstein has represented individual and institutional investors for many years, serving as lead counsel in numerous cases in United States federal and state courts. Please visit the Wolf Haldenstein website (http://www.whafh.com) for more information about the firm.
If you are a shareholder of Ply Gem Holdings, Inc. who suffered a material loss on shares purchased on or subsequent to the IPO, you may, no later than July 18, 2014, request that the Court appoint you as lead plaintiff of the class. If you would like additional information concerning your rights in this matter, please contact us immediately:
Gregory Stone, Director of Case and Financial Analysis
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016
Wolf Haldenstein Adler Freeman & Herz LLP did not file the original complaint against Ply Gem Holdings, Inc.
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Source:Wolf Haldenstein Adler Freeman & Herz LLP