Kessler Topaz Meltzer & Check, LLP Announces Critical Deadline in Hayward Holdings, Inc. Securities Class Action Lawsuit

Investors in Hayward Holdings, Inc. HAYW face an important legal milestone as the deadline to participate in a class action lawsuit rapidly approaches. Kessler Topaz Meltzer & Check, LLP, a law firm with a reputation in securities litigation, has issued a reminder that plaintiffs in the lawsuit against Hayward Holdings have until October 2, 2023, to make a claim.

Background of the Case

Hayward Holdings, headquartered in Berkeley Heights, New Jersey, is known for its design, manufacture, and marketing of pool equipment and sophisticated automation systems. However, the company is currently under legal scrutiny. The securities class action suit alleges that Hayward Holdings violated federal securities laws through misleading statements and omissions concerning the company's business operations and growth prospects. These misrepresentations reportedly led to considerable losses for investors.

Allegations of Corporate Misconduct

During the class period, which extends from October 27, 2021, through July 28, 2022, Hayward's management is accused of painting a false picture of unprecedently high demand for the company's products. Officials at Hayward celebrated what they claimed as 'Record Net Sales.' However, the complaint suggests that these assertions were marred by a channel-stuffing scheme intended to artificially boost the company's revenue and exaggerate demand.

Investor Repercussions

Hayward's actions caught up with them on July 28, 2022, when the company revealed in their second fiscal quarter report that they anticipated a significant reduction in inventory levels by their channel partners. This inventory drawdown led to a substantial cut in Hayward's 2022 fiscal guidance. News of these developments brought about a sharp decline in the value of Hayward's shares, closing nearly 23.5% lower, which caused significant investor losses.

Legal Recourse for Investors

Investors who suffered losses in HAYW have the option to seek lead plaintiff status in the class-action lawsuit by the October 2, 2023, deadline. This lawsuit offers investors a channel to possibly recover damages incurred due to the alleged misconduct by Hayward Holdings. The case, titled City of Southfield Fire and Police Retirement System v. Hayward Holdings, Inc., et al., is before the United States District Court for the District of New Jersey.

How to Participate in the Lawsuit

Potential lead plaintiffs are advised to contact the legal firm directly for more detailed information regarding the case. Kessler Topaz Meltzer & Check, LLP emphasizes that the decision to act as a lead plaintiff does not affect an individual investor's ability to partake in any possible financial recovery.

Deadline, Lawsuit, Investment