Class action considered against James Hardie

Slater and Gordon is investigating a potential shareholder class action against James Hardie in relation to its 1Q FY26 results and downgraded FY26 guidance released on 20 August 2025.

After releasing its Q1 results, the James Hardie share price declined by around 34%, wiping billions of dollars from its market capitalisation.

Slater and Gordon said that on the basis of its investigations to date, the proposed proceeding is likely to allege that James Hardie engaged in misleading or deceptive conduct and/or breached its continuous disclosure obligations, in relation to its FY26 earnings guidance, first provided to the ASX on 21 May 2025; and failure to update market consensus on its 1Q FY26 performance until 20 August 2025.

The claim proposes to represent shareholders who purchased James Hardie shares on the ASX between 21 May 2025 and 19 August 2025.

"Our financial markets rely on companies providing prompt disclosure of all material information relevant to investment decision making," Slater and Gordon head of class actions Emma Pelka-Caven said.

"It is vital that listed companies are held accountable in circumstances that shareholders are misled, or material information is withheld."

This is not the first time James Hardie shareholders have encountered issues with its governance.

In October last year the ASX launched a review into listing rules related to shareholder approval requirements, particularly when it comes to mergers and acquisitions.

The ASX said due to "heightened investor interest" around James Hardie's proposed acquisition of US-based Azek, it decided to launch the review into shareholder approval requirements for mergers and takeovers of listed companies undertaking a significant transaction.

The ASX allowed James Hardie to proceed with a $14 billion transaction without an investor vote, which led to backlash from major investors including AustralianSuper, UniSuper, Aware Super and HESTA.

Following that three US pension funds lodged proxy votes to remove Anne Lloyd as James Hardie chair at the company's AGM, also in October 2025.

CalPERS, CalSTRS and the Florida State Board of Administration lodged proxy votes with Glass Lewis, calling for Lloyd to be removed as chair.