A class action lawsuit was filed against James Hardie Industries (JHX) on October 24, 2025.
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The plaintiffs (shareholders) alleged that they bought JHX stock at artificially inflated prices between May 20, 2025 and August 18, 2025. They are now seeking compensation for financial losses incurred upon public revelation of the company’s alleged misconduct during that time. Investors who bought JHX stock during that period can click here to learn about joining the lawsuit.
James Hardie is the self-described industry leader in exterior home and outdoor living solutions. Its products include fiber cement, fiber gypsum, and composite and PVC decking and railing materials. Its share price has had a tough 2025, down over 30% in the year-to-date – see above.
Hardie’s Misleading Claims
James Hardie and two of its senior officers are accused of deceiving investors by lying or withholding important information about the company’s business. This includes omitting truthful information about the primary consumer demand and growth in its North America segment from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused James Hardie stock to trade at artificially inflated prices during the time in question.
As mentioned in the class action, the “truth came out” in August this year when James Hardie reported that North America Fiber Cement sales declined by 12%, Q1 2026 profit declined by 29%, and it projected lower-than-expected fiscal 2026 earnings.
It said that its poor performance largely reflected “expected normalization of channel inventories due to moderating growth expectations by our customers as uncertainty built throughout April and early May.” The Company’s CEO added that, “we believe it is prudent to plan for more cautious order patterns and defensive inventory positioning at our channel partners, exacerbated by the slower seasonality of new construction into the back half of the calendar year.”
Plaintiffs’ Arguments
It is alleged that the company and/or individual defendants repeatedly made false and misleading public statements throughout the Class Period.
During an earnings call held at the beginning of the Class Period, the Company’s CEO stated:“Our full year business results demonstrate the inherent strength of our unique value proposition and the underlying momentum in our strategy against a softer market environment.”
In response to an analyst’s question during the same call, James Hardie’s CEO also stated: “I would say that we are seeing normal stock levels out there just as a general statement.”
Lastly, in a May 21, 2025 earnings release, the company stated: “In North America, the company is outperforming its end markets through a superior value proposition and driving leading margins despite raw material headwinds. James Hardie’s significant material conversion opportunity and investments across the North American manufacturing footprint have positioned the company well to capitalize as the market returns to growth and the long-term housing fundamentals play through.”