NEW YORK, May 29, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit was 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 pursuant and/or traceable to the Company's May 22, 2013 initial public offering ("IPO").
If you want more information about the Ply Gem Shareholder Class Action, please email info@morgansecuritieslaw.com or contact Morgan & Morgan at 1-800-732-5200. If you purchased Ply Gem shares you may, no later than July 18, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that Ply Gem, certain of its officers and directors, and the IPO underwriters violated the Securities Act of 1933 as described below.
On or about May 22, 2013, the SEC declared effective Ply Gem's Form S-1 Registration Statement, as amended ("Registration Statement") for the IPO. The complaint alleges that the Registration Statement, and the documents referenced and incorporated therein, negligently failed to disclose certain material events including: (i) issues related to a supply agreement with Home Depot; (ii) on-going labor inefficiencies and other ramp-up costs associated with the initial roll out of lower-priced, lower-margin products; (iii) a particularly poor April 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 (iv) high customer inventory at the end of the first quarter. In addition, 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.
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 of the filing of this lawsuit, Ply Gem common shares traded in a range between $10.50 and $11 per share – 50% less than the IPO price.
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