An investigation on behalf of current long term investors in Ply Gem Holdings Inc (NYSE:PGEM) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE:PGEM stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/04/2016 -- An investigation for long-term investors in shares of Ply Gem Holdings Inc (NYSE:PGEM) concerning potential breaches of fiduciary duties by certain directors of Ply Gem Holdings Inc was announced.
Investors who are current long term investors in Ply Gem Holdings Inc (NYSE:PGEM) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The investigation by a law firm for current long term investors in NYSE:PGEM stocks follows a lawsuit pending against Ply Gem Holdings Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:PGEM stocks, concerns whether certain Ply Gem Holdings directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges 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 initial public offering ("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.
Those who purchased shares of Ply Gem Holdings Inc have certain options and should contact the Shareholders Foundation.
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