We are investigating JELD-WEN Holding, Inc. (JELD) (“Jeld-Wen” or the “Company”) for potential violations of the federal securities laws.
On February 15, 2018, the Company announced that a jury had returned a verdict against Jeld-Wen in the Company’s ongoing litigation with Steves and Sons, Inc. (the “Steves Litigation”), finding that Jeld-Wen’s conduct violated U.S. antitrust laws. On August 7, 2018, a veteran industry analyst at J.P. Morgan slashed his estimates for Jeld-Wen’s earnings in 2018 and 2019 and lowered his price target for Jeld-Wen’s stock, citing, among other issues, the Steves Litigation. In response to the J.P. Morgan report, Jeld-Wen’s stock price fell $2.62 per share, or 9.95%, to close at $23.71 per share on August 8, 2018. Then, on October 4, 2018, the judge presiding over the Steves Litigation ruled that Jeld-Wen would be required to divest a facility it had obtained via its acquisition of CraftMaster Manufacturing, Inc. in October 2012. On this disclosure, which prompted several analyst downgrades, Jeld-Wen’s stock price fell $1.18 per share, or nearly 5%, over the following two trading sessions, closing at $22.91 per share on October 9, 2018. Finally, on October 15, 2018, Jeld-Wen announced that the Company expected its third quarter 2018 financial results to include a $76.5 million charge related to the ongoing Steves Litigation. The Company also announced the resignation of its Chief Financial Officer. On these disclosures, Jeld-Wen’s stock price fell $4.03 per share, or 18.91%, to close at $17.28 per share on October 16, 2018.