Ply Gem IPO Under Fire
June 17, 2014
The Waterford Township Police and Fire Retirement System has filed a federal securities class action complaint against Ply Gem Holdings in the U.S. District Court for the Southern District of New York, claiming the company failed to disclose financial information relevant to its future operating results to those who purchased common shares during Ply Gem's IPO in May 2013. In court documents, the plaintiffs allege Ply Gem did not reveal plans to buy back certain inventory from The Home Depot, that it was experiencing "ongoing labor inefficiencies and other ongoing ramp-up costs associated with the initial rollout of lower-priced, lower-margin products to Home Depot," and that "April 2013 was a particularly poor month for the company."
At press time, Ply Gem's response to the complaint was due June 18, 2014.