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Building materials giant James Hardie Industries (ASX: JHX) is facing potential shareholder class action proceedings on two separate fronts, with law firms Maurice Blackburn and Slater and Gordon both investigating claims tied to a 34 per cent share price collapse in August, while a third firm has already launched proceedings over an earlier profit downgrade.
The twin investigations centre on James Hardie's weaker-than-expected first quarter FY26 results and significantly downgraded full-year guidance released on 20 August 2025, which sent shares plunging from $44.34 to $28.98 over two trading days, wiping billions of dollars from the company's market capitalisation.
The results revealed net sales down 9 per cent, adjusted EBITDA down 21 per cent, adjusted net income down 29 per cent and adjusted earnings per share down 28 per cent versus the prior corresponding period.
Both Maurice Blackburn and Slater and Gordon are examining whether James Hardie failed to keep the market informed of material information during a class period running from 21 May 2025 to 19 August 2025. Neither firm has yet filed proceedings.
“Our financial markets rely on companies providing prompt disclosure of all material information relevant to investment decision making," says Emma Pelka-Caven, the head of class actions at Slater and Gordon.
"It is vital that listed companies are held accountable in circumstances that shareholders are misled, or material information is withheld.”
Slater and Gordon announced its investigation into James Hardie today after Maurice Blackburn revealed its plans for a potential class action on Monday.
The August 2025 share price hit comes on the heels of a separate class action already under way by Echo Law over an earlier profit downgrade.
Echo Law has commenced proceedings in the Supreme Court of Victoria over James Hardie's 8 November 2022 FY23 guidance downgrade, which caused a 14 per cent slump in the company's share price.
In that matter, James Hardie cut its FY23 adjusted net income guidance from an original range of $740 million to $820 million, issued on 7 February 2022, down to $650 million to $710 million on 8 November 2022.
James Hardie, which is listed on both the ASX and the New York Stock Exchange, manufactures fibre cement and building products sold across North America, Australia, New Zealand and Europe.
The company has not publicly responded to either the Maurice Blackburn and Slater and Gordon investigations but has previously said it will fight the shareholder class action led by Echo Law.
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