Saxena White Launches Legal Action Against Atkore for Securities Fraud
Chicago, Saturday, 22 February 2025.
A class action lawsuit accuses Atkore of price-fixing and misleading investors, causing a nearly 20% drop in stock price post-revelation of the alleged misconduct.
Legal Action Details
Saxena White P.A. filed a securities fraud class action lawsuit against Atkore Inc. (NYSE: ATKR) and certain executives in the U.S. District Court for the Northern District of Illinois on February 22, 2025 [1][2]. The lawsuit, titled Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Atkore Inc., claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1]. The class period covers investors who purchased Atkore common stock between February 1, 2024, and February 3, 2025 [1][2].
Allegations and Financial Impact
The lawsuit alleges that Atkore, an Illinois-based manufacturer of PVC water pipes and electrical conduits, engaged in an anticompetitive price-fixing scheme that artificially inflated PVC pipe prices [1]. The truth emerged on February 4, 2025, when Atkore reported first-quarter fiscal year 2025 net sales of $661.6 million, falling below analyst estimates of $680.7 million [1]. The company’s CFO reported that the plastic pipe and conduit product category declined mid-single digits during the quarter [1]. Following these revelations, Atkore’s stock price plummeted from $79.72 per share to $64.13 per share, representing a nearly 20% decline [1][2].
Broader Legal Implications
The securities fraud allegations are further complicated by a Department of Justice grand jury investigation into antitrust issues related to Atkore’s PVC pipe manufacturing operations, which was disclosed on February 19, 2025 [3][5]. The company has also reduced its adjusted earnings guidance by approximately $75 million, specifically attributing this reduction to its PVC business [1].
Next Steps for Investors
Affected investors who purchased Atkore stock during the class period have until April 23, 2025, to file a motion to be appointed as lead plaintiff [1]. However, as noted by Marco A. Dueñas, Senior Attorney at Saxena White P.A., investors do not need to seek appointment as lead plaintiff to participate in any potential class recovery [1][2].