Hagens Berman Investigates James Hardie After 34% Stock Drop, Investors Encouraged to Act

Hagens Berman Investigates James Hardie (JHX) After Significant Stock Drop

In a stark warning, Hagens Berman, a national firm specializing in shareholder rights, is urging investors in James Hardie Industries plc (NYSE: JHX) to take action after the company’s stock plummeted by over 34%. This significant drop is attributed to allegations that the firm misled investors regarding its performance in the North American fiber cement market. The firm highlights a crucial deadline—December 23, 2025—for investors to move the court for the appointment as lead plaintiff in a securities class action lawsuit against the company.

Background on the Allegations

Hagens Berman's investigation centers on claims that executives at James Hardie provided false assurances about the stability and growth of customer demand. In previous communications, the company indicated that inventory levels with their channel customers remained ‘normal’. However, it has come to light that these claims might obscure a troubling reality—an aggressive destocking trend initiated by customers that began taking shape in April and May of 2025.

The pivotal moment occurred in August 2025, when the company disclosed a shocking 12% decline in sales within the fiber cement segment, leading to a drastic loss of confidence among investors. This announcement saw James Hardie's stock value drop approximately $9.79 per share, leaving many shareholders questioning the integrity of the company’s earlier statements.

Legal Claims and Investigative Focus

Reed Kathrein, the partner leading the investigation, emphasizes their concern over the accuracy of the executives' statements. There is suspicion that the firm engaged in practices referred to as ‘inventory loading’—a tactic where sales figures are artificially inflated due to increased inventory levels, which do not reflect genuine consumer demand.

This revelation poses critical legal questions: Did James Hardie misrepresent the market’s stability, and did the undisclosed sales practices violate federal securities laws? Furthermore, the investigation includes the unexpected replacement of James Hardie's Chief Financial Officer—an event that raises additional questions about the company's financial practices and transparency.

Next Steps for Investors

Hagens Berman has a proven track record in securing settlements for investors and maintaining corporate accountability, with over $2.9 billion retrieved in the past. Investors concerned about their holdings in James Hardie from May 20, 2025, to August 18, 2025, are urged to contact the firm to explore their potential claims. The deadline to participate as a lead plaintiff is fast approaching, setting December 23, 2025, as the final date for action.

As a part of this investigation, the firm is also welcoming whistleblowers—individuals who may possess non-public information about James Hardie—to contact them. Under the new SEC Whistleblower Program, those who provide original information may be entitled to a reward, thus encouraging transparency and corporate accountability.

Conclusion

The situation surrounding James Hardie serves as a crucial reminder for investors to remain vigilant and proactive regarding their investments. As Hagens Berman continues its investigation, it aims to ensure that investors receive the justice they deserve following alleged corporate wrongdoing. Interested individuals are encouraged to reach out to Hagens Berman, either by calling Reed Kathrein directly or through the secure forms provided by the firm to discuss their rights and options regarding this noteworthy class action lawsuit.