James Hardie Industries plc (ASX: JHX) is facing a shareholder class action in the Supreme Court of Victoria over allegations its FY26 earnings guidance and market disclosures caused investors to suffer losses before a sharp downgrade wiped billions of dollars from its market value.
James Hardie manufactures and markets exterior home and outdoor living products and solutions across Australia, New Zealand, Europe and North America.
Slater and Gordon Lawyers has filed the proceeding on behalf of investors who acquired James Hardie shares between May 25, 2025 and August 19, 2025, inclusive.
The action centres on FY26 earnings guidance first provided by James Hardie on May 21, 2025 and subsequently downgraded on August 20, 2025.
Following the downgrade, James Hardie shares fell by approximately 34% over two trading days, erasing billions of dollars in shareholder value.
Class action alleges disclosure failures
Slater and Gordon alleges James Hardie made misleading representations in relation to its FY26 earnings guidance and failed to comply with continuous disclosure obligations applying to ASX-listed companies.
The proceeding alleges breaches of provisions of the Corporations Act 2001, ASIC Act 2001 and Australian Consumer Law.
According to the claim, the FY26 guidance did not adequately account for issues later disclosed when James Hardie downgraded its outlook on August 20, 2025.
Slater and Gordon alleges this resulted in James Hardie shares trading at a higher price than they otherwise would have and investors paying more for shares during the relevant period.
The allegations have not yet been determined by the court.
Investors rely on timely disclosures
Slater and Gordon Class Actions Practice Group leader Kirsten Morrison said investors depended on accurate and timely information when making investment decisions.
“Our disclosure laws are designed so investors receive prompt and accurate information about a company’s financial and operating health, enabling them to make informed decisions about where to put their money,” Morrison said.
She said shareholder class actions provided investors with a mechanism to seek compensation where they alleged losses had resulted from corporate misconduct.
The James Hardie proceeding follows a shareholder class action announced by Slater and Gordon against Web Travel Group Ltd.
Who can participate
The James Hardie class action is open to investors who acquired ASX-listed JHX shares through any trading platform between May 21 and August 19 2025, inclusive.
Slater and Gordon is seeking registrations from retail investors, superannuation funds, institutional investors and fund managers that acquired shares during the period.
Group members will not be required to pay upfront or out-of-pocket costs to participate.
The lead plaintiff intends to seek a group costs order, which, if approved by the court, would allow Slater and Gordon’s legal costs to be calculated as a percentage of any damages or settlement recovered.
Next steps
The class action will proceed through the Supreme Court of Victoria, with the allegations against James Hardie to be tested through the court process.
Eligible investors who acquired James Hardie shares during the specified period can register their interest with Slater and Gordon while the proceeding progresses.