James Hardie JHX Tumbles 3.41% Amid 51.66% Trading Volume Drop as Law Firms Investigate Alleged Misleading Sales Practices and Inventory Manipulation

On August 25, 2025, shares of James Hardie Industries plc (JHX) fell 3.41% to $18.64, with a trading volume of $0.21 billion—marking a 51.66% decline from the previous day. The stock’s sharp drop followed revelations during the company’s earnings call on August 19, which disclosed a 12% quarter-on-quarter decline in North American net sales. Management attributed the downturn to customers reducing inventory levels after earlier temporary stocking, raising questions about the sustainability of prior growth claims.

Two law firms have launched investigations into potential securities law violations by James Hardie. Bleichmar Fonti & Auld LLP highlighted that the company’s North American sales during the relevant period may have relied on inflated channel partner inventories rather than genuine demand. Similarly, Pomerantz LLP is probing whether executives misled investors about the firm’s financial health. Both cases stem from the company’s Q1 2026 earnings report, which projected weaker-than-expected fiscal 2026 results amid elevated borrowing costs.

James Hardie, a manufacturer of fiber cement and gypsum building materials, emphasized its North American market as a strategic growth driver. However, the recent disclosures suggest a disconnect between reported performance and underlying demand. The firm warned that ongoing inventory destocking by partners will likely weigh on sales for multiple quarters, signaling a prolonged period of volatility for shareholders.

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