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James Hardie Industries (JHX) Lawsuit Alleges Securities Fraud Over Inventory Misstatements – Hagens Berman

1. A class-action lawsuit alleges James Hardie misled investors on demand. 2. Claims focus on inventory deception in North America, vital for earnings. 3. Company's stock fell over 34% after revealing sales drop of 12%. 4. Management's prior assurances about demand were later contradicted. 5. Investors are urged to report any relevant information for the lawsuit.

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FAQ

Why Very Bearish?

The lawsuit indicates severe management misjudgment and misreporting, leading to significant stock drop. Historical cases like Enron show that lawsuits and allegations can greatly harm investor trust and stock price.

How important is it?

The article directly concerns allegations affecting JHX's core financial health and investor sentiment. Given the substantial stock price drop, this is critical for potential investors and current stakeholders.

Why Long Term?

The repercussions of legal issues and reputation damage could take time to resolve. Recovery may be hindered by perceived unsustainable business practices.

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SAN FRANCISCO, Oct. 31, 2025 (GLOBE NEWSWIRE) -- A class-action lawsuit has been filed against James Hardie Industries plc (NYSE: JHX), the dominant producer of fiber cement building materials in the U.S., alleging the company committed securities fraud by misleading investors about inventory levels and customer demand in its crucial North American segment. Hagens Berman is investigating the alleged claims and urges investors in James Hardie who suffered significant losses to contact the firm now. Read more about the issue facing JHX investors, Alleged Inventory Deception: Investors Claim James Hardie Concealed Weak Demand. Class Period: May 20, 2025 – Aug. 18, 2025Lead Plaintiff Deadline: Dec. 23, 2025Visit: www.hbsslaw.com/investor-fraud/jhx Contact the Firm Now: JHX@hbsslaw.com | 844-916-0895 The James Hardie Industries (JHX) Securities Class Action The lawsuit, Laborers’ District Council & Contractors’ Pension Fund of Ohio v. James Hardie Industries PLC., et al., 25-cv-13018 (N.D. Ill.), filed on behalf of all investors who purchased or acquired James Hardie common stock—which converted from American Depositary Shares on July 1, 2025—between May 20, 2025, and August 18, 2025 (the "Class Period"), seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The action centers on James Hardie’s North America Fiber Cement segment, which the company states generates about 80% of its total earnings. The plaintiffs allege that despite the company starting to observe significant inventory destocking by its North American channel partners in April and early May 2025, management publicly denied the trend and assured investors of the segment’s sustained strength. Specifically, the complaint highlights statements made by company executives on or around May 20 and 21, 2025, which it claims falsely represented that customer demand remained robust and expressly denied that inventory destocking was occurring. The plaintiffs contend that these assurances concealed an underlying problem: sales were artificially inflated by “inventory loading by channel partners, with the hallmarks of fraudulent channel stuffing,” rather than genuine, sustainable customer demand. This alleged deception came to a head on August 19, 2025, when James Hardie belatedly disclosed a sharp decline in performance. The company reported that sales in the North America Fiber Cement division had dropped by 12%, attributing the decline to the very customer destocking it had previously denied, which management now admitted had been discovered "in April through May." Company CEO and Executive Director Aaron Erter sought to frame the downturn as a “normalization of channel inventories,” but cautioned that the impact was expected to affect sales for at least the next two quarters. The market’s reaction was severe and swift. Following the disclosure, James Hardie’s common stock dropped by over 34%. The plaintiffs argue that this precipitous decline—and the significant losses suffered by investors—was a direct result of the defendants’ alleged wrongful acts and omissions during the Class Period. The lawsuit aims to recover damages on behalf of the Class Members who were financially injured by the sudden reversal of the company’s reported financial health. Hagens Berman’s Investigation on Behalf of Investors Hagens Berman is actively investigating the alleged claims. “We want to know if James Hardie’s sales were fueled by unsustainable sales practices and whether senior management was aware of the problem,” said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in James Hardie and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now. If you’d like more information and answers to frequently asked questions about the James Hardie case and our investigation, read more. Whistleblowers: Persons with non-public information regarding James Hardie should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email JHX@hbsslaw.com. About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895

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