Hayward Holdings, Inc.
A securities class action has been filed in the USDC – N.J. against Hayward Holdings, Inc. (HAYW) (“Hayward” or the “Company”) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Hayward securities between March 2, 2022 through July 27, 2023, both dates inclusive (the “Class Period”).
Hayward is a global designer, manufacturer, and marketer of a broad portfolio of pool equipment and associated automated systems.
The Complaint alleges, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- Hayward Holdings and its management had engaged in a channel-stuffing scheme designed to artificially boost Hayward Holdings’ short-term sales and earnings;
- Hayward Holdings had flooded its channel partners with inventory that they did not want or need at a level that far outpaced then-existing consumer demand;
- Hayward Holdings’ 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;
- Hayward Holdings’ channel-stuffing scheme had cannibalized future sales, materially impairing Hayward Holdings’ ability to sell to its customers;
- 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; and
- as a result of the above, Hayward Holdings’ projected 2022 financial results were not achievable and lacked a reasonable basis in fact.
On July 28, 2022, Hayward Holdings announced financial results for the second fiscal quarter of 2022. As a result, the price of Hayward Holdings common stock fell nearly 24%, damaging investors.
If you purchased Hayward securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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