Hayward Holdings, Inc. (NYSE: HAYW)
NEW YORK, NY – August 11, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) reminds investors that a federal securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of persons and entities that purchased or otherwise acquired Hayward Holdings, Inc. (“Hayward” or the “Company”) (NYSE: HAYW)common stock between March 2, 2022 and July 27, 2022, inclusive (the “Class Period”).
All investors who purchased shares and incurred losses are advised to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774.
If you have incurred losses, you may, no later than October 2, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
The filed complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
- that Hayward and its management had engaged in a channel-stuffing scheme designed to artificially boost Hayward’s short-term sales and earnings;
- that 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;
- that Hayward’s channel partners were suffering from an inventory glut as a result of the channel-stuffing scheme that would require a massive destocking in the second half of 2022;
- that Hayward’s channel-stuffing scheme had cannibalized future sales, materially impairing the Company’s ability to sell to its customers;
- that 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, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all times.
On July 28, 2022, Hayward disclosed that it was expecting its channel partners to reduce its inventory on hand by approximately 4 to 6 weeks in the second half of 2022. As a result, the Company updated its full year 2022 outlook expecting net sales to decline between 2% and 6% year-over-year, compared to
prior guidance expecting net sales growth between 9% and 12% year-over-year.
On this news, the price of Hayward’s stock price fell $2.50, or 17.9%, to close at $11.21 per share on July 28, 2022.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at firstname.lastname@example.org.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Tel: (800) 575-0735 or (212) 545-4774
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Certification and Authorization Pursuant to Federal Securities Laws
Date of signing: 09/27/2023