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Building materials giant James Hardie has been accused of breaching continuous disclosure obligations by its alleged failure to keep the market informed of material issues affecting financial performance.
Maurice Blackburn filed shareholder proceedings against James Hardie in the Supreme Court of Victoria last Friday, 5 June.
It comes after James Hardie released weaker-than-expected Q1 FY2025–26 results and downgraded its full-year guidance, after which its shares fell by more than 34 per cent over 20 and 21 August 2025.
The class action firm alleged the company engaged in misleading or deceptive conduct and breached its continuous disclosure obligations under the Corporations Act 2001 and ASX Listing Rules.
The proceedings will focus on whether, prior to 20 August 2025, James Hardie failed to disclose adverse conditions affecting its North American Fiber Cement segment, including customer destocking, inventory management issues, and softening demand.
Maurice Blackburn will also focus on whether James Hardie should have corrected or withdrawn its FY25–26 earnings guidance earlier.
“Shareholders are entitled to accurate and timely information when making investment decisions,” principal Julian Schimmel said.
“When companies fail to disclose material information to the market, the result can be a sharp correction in share price that causes significant losses for investors.
“This class action seeks to hold James Hardie accountable and to recover compensation for shareholders who were affected.”
James Hardie said it intends to defend itself in the proceedings.
Maurice Blackburn encourages shareholders who acquired an interest in James Hardie shares between 21 May 2025 and 19 August 2025 (inclusive) to register their interests.
