NEW YORK, Aug. 04, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of Hayward Holdings, Inc. (NASDAQ: HAYW)?
- Did you purchase your shares between March 2, 2022 and July 27, 2022, inclusive?
- Did you lose money in your investment in Hayward Holdings, Inc.?
- Do you want to discuss your rights?
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Hayward Holdings, Inc. (“Hayward” or the “Company”) (NASDAQ: HAYW) between March 2, 2022 and July 27, 2022, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of New Jersey and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Hayward common stock, and/or would like to discuss your legal rights and options please visit Hayward Holdings, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
According to the Complaint, Hayward is a global designer, manufacturer, and marketer of pool equipment and associated automated systems. Hayward’s products perform various core and auxiliary functions to improve and deliver the pool experience for pool owners. Examples of the Company’s products include speed pumps, water sanitization equipment, energy-efficient heaters, pool lights, and mobile applications to allow for pool connectivity.
In May 2022, Hayward conducted a follow-on registered stock offering, pursuant to which defendant CCMP Capital Advisors, LP (“CCMP”) and another financial backer of the Company sold over 27.3 million Hayward shares (including a partial exercise of the overallotment option) at $13.88 per share (the “SPO”). CCMP alone sold 17.6 million shares in the SPO, generating $245 million in gross sale proceeds. Unusually, Hayward purchased 8 million shares in the SPO through the previously announced share repurchase program, providing further artificial price support and indicating to outside investors that, in the opinion of Hayward management, the stock was undervalued.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Among other things, Defendants failed to disclose that: (i) Hayward and its management had engaged in a channel-stuffing scheme designed to artificially boost Hayward’s short-term sales and earnings; (ii) Hayward had flooded its channel partners with inventory that they did not want or need at a level that far outpaced then-existing consumer demand; (iii) Hayward’s channel partners were suffering from an inventory glut as a result of the channel-stuffing scheme that would require a massive de-stocking in the second half of 2022; (iv) Hayward’s channel-stuffing scheme had cannibalized future sales, materially impairing Hayward Holdings’ ability to sell to its customers; and (v) the demand for pool equipment had slowed down, which, combined with flooding channel partners with more inventory, led to an inventory glut and the need for these channel partners to reduce inventory levels.
On July 28, 2022, Hayward reported poor second quarter 2022 results – the same quarter during which the SPO was conducted. Most notably, Hayward disclosed the need for a massive inventory de-stocking as its distribution partners had far more product than they could sell to consumers. Hayward slashed expected 2022 net sales growth from a range of 9% to 12% to a decline of 2% to 6%. In addition, Hayward cut expected 2022 adjusted earnings from a range of $460 million to $475 million to a range of just $385 million to $400 million, a 16% decline at the mid-point. Because Hayward had already achieved $254 million in adjusted earnings during the first six months of the year, at the low end of this range Hayward’s adjusted earnings would fall by half over the next six months.
On this news, Hayward’s common stock declined $3.23 per share, or approximately 23.5%, to close at $10.48 per share on July 29, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than October 2, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Hayward common stock, and/or would like to discuss your legal rights and options please visit Hayward Holdings, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2023 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
