BALA CYNWYD, Pa., June 24, 2014 /PRNewswire/ --Law Office of Brodsky & Smith, LLC 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 all those investors who purchased or otherwise acquired shares of Ply Gem Holdings, Inc. (NYSE: PGEM) ("Ply Gem" or the "Company") pursuant or traceable to the Company's May 22, 2013, initial public offering.
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The Complaint alleges that the prospectus and registration statement issued in connection with the Company's IPO were false and misleading because they failed to disclose that: (1) 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"); (2) the Supply Agreement required that Ply Gem initially sell Home Depot a large volume of lower-margin product; (3) Ply Gem was experiencing ongoing labor inefficiencies and other ramp-up costs associated with the Supply Agreement; (4) April 2013 was a particularly weak month for the Company's siding operations, with management noting that "maybe it wasn't our worst April in eight years, but it was our worst in a while"; and (5) 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.
On August 13, 2013, Ply Gem disclosed weak earnings in its quarterly financial results, driven largely by labor inefficiencies and other ramp-up costs associated with its Supply Agreement with Home Depot. The Company also revealed that its siding department had experienced particularly slow demand in April and that it had repurchased certain inventory under the Supply Agreement, further undermining quarterly financial results. On this news, the price of Ply Gem common stock declined $3.66 per share, or more than 19%, from a close of $18.92 per share on August 12, 2013, to close at $15.26 per share on August 13, 2013.
If you are a member of the class described above, you may, not later than July 18, 2014, move the Court to serve as a lead plaintiff of the class, if you so choose. If you purchased shares of Ply Gem stock during the Class Period and wish to discuss this action, you may e-mail or call the Law Office of Brodsky & Smith, LLC who will, without obligation or cost to you, answer your questions. Please contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at investorrelations@brodsky-smith.com, by visiting http://brodsky-smith.com/779-pgem-ply-gem-holdings-inc.html, or calling toll free 877-LEGAL-90.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
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