LOS ANGELES, Aug. 19, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Western District of Virginia on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Trex Company, Inc. ("Trex" or the "Company'') (NYSE:TWP), between October 25, 2004 and June 22, 2005, (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Trex and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Trex's operations and financial performance caused Trex's stock price to become artificially inflated, inflicting damages on investors. Trex manufactures and distributes wood/plastic composite products primarily for residential and commercial decking and railing applications. The Complaint alleges that defendants' Class Period representations concerning Trex were materially false and misleading when made for the following reasons: (1) expected re-orders of inventory were not materializing, as Trex distributors worked to dispose of excess inventory; (2) the expansion of the Company's distribution program with The Home Depot materially slowed due to delays in rolling out the Company's products; (3) the Company's cost- cutting initiatives failed to limit the impact of higher raw material costs; (4) there were manufacturing issues with the Artisan and Brasilia rail lines; and (5) as a consequence of the foregoing, defendants' positive statements about the Company's growth and progress were lacking in any reasonable basis when made.
On June 22, 2005, Trex shocked the market when it announced that the Company expected a substantial loss for second quarter 2005 and guided its earnings lower for the year. As a result of this news, shares of Trex fell $10.59 per share, or 29.66%, on June 23, 2005, to close at $25.11 per share.
Additionally, during the Class Period and with the Company's stock trading at artificially inflated prices, Company insiders sold 680,395 shares for gross proceeds of $29,833,121.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than September 6, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.