Masonite International Accused of Misleading Investors in Acquisition Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
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Should l Buy ?
Source: Businesswire
- Lawsuit Background: Robbins LLP has filed a class action against Masonite International, alleging that the company misled investors between June 5, 2023, and February 8, 2024, by failing to disclose critical information regarding Owens Corning's acquisition offers, which would have indicated a significant premium to the stock price.
- Share Buyback Controversy: Masonite repurchased nearly 270,000 shares for approximately $25 million from June to December 2023 without disclosing Owens Corning's offers, leading to substantial losses for investors who sold at lower prices.
- Stock Price Surge: Following the announcement of the acquisition agreement on February 9, 2024, Masonite's stock price soared to $130.51, reflecting a 35.1% increase from the previous trading day, indicating strong market reaction to the acquisition news.
- Investor Rights: Affected shareholders are encouraged to participate in the class action, with Robbins LLP offering representation on a contingency fee basis, aiming to help shareholders recover losses and improve corporate governance practices.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
