JELD-WEN Holding, Inc. (JELD) Accused of Concealing Collusive Pricing Strategy
In June 2014, an independent door manufacturer filed a lawsuit against Jeld-Wen after the Company raised its prices in its supply agreements with independent door manufacturers in response to its main competitor having stopped selling molded doors. On February 15, 2018, a jury found Jeld-Wen guilty of violations of U.S. antitrust laws and awarded the plaintiff treble damages totaling approximately $174 million. The judge also ordered the divestiture of a door skin facility Jeld-Wen had acquired as part of a prior acquisition. As a result, on October 15, 2018, Jeld-Wen revealed that the Company expected its third quarter 2018 financial results to include a $76.5 million charge related to the pending litigation. On this news, Jeld-Wen’s stock price declined 19% to close at $17.28 per share and has yet to recover.