James Hardie Industries' (JHX) stock experiences a sharp decline following disclosure of inventory "reduction" plans by the firm - as reported by Hagens Berman
Investigation Launched Against James Hardie for Potential Misleading Statements
In a significant development, Hagens Berman, a global plaintiffs' rights complex litigation firm focusing on corporate accountability, has announced an investigation into James Hardie, a leading building materials company. The investigation centres around allegations that James Hardie may have misled investors about its sales practices and business model sustainability.
According to Hagens Berman, the company may have presented a facade of sustained demand, while overloading channel partners with excess product. This claim is based on the contrast between James Hardie's previous assurances and its recent performance.
On August 19, 2025, James Hardie reported dismal Q1 2026 results, with a 12% year-over-year decline in North America sales volumes. The decline was attributed to customers destocking their inventory from April to May. This reduction in sales led to a 34% share crash on August 20, 2025. The crash was due to disclosed issues within James Hardie's North America business, its largest segment.
Reed Kathrein, the Hagens Berman partner leading the investigation, stated that the company may have misled investors about the extent of inventory destocking and whether it may have artificially inflated earlier sales figures.
Hagens Berman has a track record of success in this area of law, having secured over $2.9 billion for clients. The firm represents investors, whistleblowers, workers, consumers, and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings.
Whistleblowers who provide original information may be eligible for rewards totaling up to 30% of any successful recovery made by the SEC. Persons with non-public information regarding James Hardie can contact Reed Kathrein at 844-916-0895 or email [email protected].
In May 2025, James Hardie claimed its business model would allow it to 'structurally grow through expansions and contractions.' However, the current investigation suggests that this may not have been the case.
Investors who suffered significant losses from James Hardie are urged to contact Hagens Berman. The investigation is ongoing, and more information about Hagens Berman and its successes can be found at hbsslaw.com.
As of mid-September 2025, there have been significant institutional investor activities following disappointing quarterly results and legal investigations. However, the specific shareholders of James Hardie Industries who contacted Hagens Berman after the company initiated the investigation on September 18, 2025, are not explicitly named or detailed in the available search results.
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