James Hardie Faces Another Class Action Over Earnings Forecast
Synopsis
Slater and Gordon has filed a class action against James Hardie over its fiscal 2026 earnings forecasts and disclosures, following a major share price decline.
Key Highlights
- Slater and Gordon has launched a class action against James Hardie over its fiscal 2026 earnings guidance and market disclosures.
- The action covers investors who purchased James Hardie shares between May 21 and August 19, 2025.
- The lawsuit alleges the company made misleading statements and breached its disclosure obligations.
- James Hardie shares dropped almost 35% over two days in August 2025 after the company downgraded its fiscal 2026 outlook.
Slater and Gordon said on Monday that it had filed a class action in an Australian court against James Hardie Industries, seeking compensation for investors who suffered losses linked to the company’s fiscal 2026 earnings guidance and market disclosures. The law firm said the proceedings were brought on behalf of investors who acquired James Hardie shares between May 21 and August 19, 2025, inclusive.
Claims Over Earnings Forecast
The class action alleges that James Hardie made false or misleading representations and breached its continuous disclosure obligations concerning its fiscal 2026 earnings forecasts issued in May and August 2025.
The lawsuit also claims that the company’s conduct artificially inflated its share price, meaning investors paid more for the stock than they otherwise would have if James Hardie had complied with its legal obligations. James Hardie did not immediately respond to a Reuters request for comment. Its shares fell almost 2% to A$43 on Monday.
Another Class Action
James Hardie said on Friday that it had been served with another class action in Australia. That case alleges the company failed to disclose adverse conditions in its North American business before reporting quarterly results and cutting its annual forecast in August.
The latest action follows a separate class action filed in June concerning the company’s disclosures around its financial performance.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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