NEW YORK, May 28, 2014 /PRNewswire/ -- Milberg LLP announces that class action lawsuit has been filed in the United States District Court for the Southern District New York on behalf of purchasers of Ply Gem Holdings, Inc. ("Ply Gem" or the "Company) (NYSE MKT: PGEM) common stock in connection with the Company's initial public offering ("IPO") on May 22, 2013, alleging that Ply Gem, certain of its officers and directors and the underwriters of the IPO violated the Securities Act of 1933 ("Securities Act").
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. Specifically, the complaint alleges that the Registration Statement, including its referenced and incorporated documents, negligently failed to reveal certain material events known to defendants that resulted in the financial information reported in the Registration Statement not to be indicative of Ply Gem's future operating results, including the following:
(i) Ply Gem had agreed to buy back certain inventory from The Home Depot, Inc. ("Home Depot") as an accommodation according to a new supply agreement between the two companies (the "Supply Agreement");
(ii) the Supply Agreement required Ply Gem to initially sell Home Depot a large amount of lower-priced, lower-margin product;
(iii) Ply Gem was experiencing on-going labor inefficiencies and other ramp-up costs related to the initial roll out of lower-priced, lower-margin products to Home Depot;
(iv) April 2013 was a predominantly poor month for Ply Gem, with management admitting 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 negatively impacting the demand for and sales of Ply Gem's siding products in April 2013 and May 2013.
Also, the Registration Statement failed to disclose all material risks and changes in Ply Gem's business affairs as required according to the instructions of Form S-1. These known, but undisclosed events had a material adverse effect on Ply Gem's operating results during its second quarter ended June 29, 2013. At the time this lawsuit was filed, Ply Gem common shares traded between $10.50 and $11 a share – 50% less than the IPO price.
If you purchased Ply Gem shares between May 20, 2013 and May 19, 2014, you may no later than July 18, 2014, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
If you would like to learn more about this potential matter, please contact the following attorney:
Andrei Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: contactus@milberg.com
SOURCE Milberg LLP
