Hayward Holdings $19.85M Securities Class Action Settlement

Investors who purchased or otherwise acquired Hayward Holdings Inc. common stock (ticker symbol: HAYW) between Oct. 27, 2021, and July 28, 2022, may be eligible to claim a cash payment from a class action settlement.

Hayward Holdings Inc., its chief executive officer and chief financial officer, private equity sponsors CCMP Capital and MSD Partners and several individual directors agreed to pay $19.85 million to settle a securities class action lawsuit alleging they made materially false and misleading statements and omissions regarding inventory, growth and demand trends for Hayward's pool products.

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Hayward Holdings Inc. common stock between Oct. 27, 2021, and July 28, 2022, inclusive.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or acquirer or a legal representative must submit the claim.
• All joint purchasers or acquirers must sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.

How much can class members get?

The total settlement fund is $19,850,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation, which applies different formulas depending on when class members purchased and sold shares.
• For shares purchased during the class period and sold before the opening of trading on Jan. 24, 2022, the recognized loss is $0.
• For shares sold between the opening of trading on Jan. 24, 2022, and the close of trading on July 28, 2022, the recognized loss is the lesser of the difference in artificial inflation between the purchase and sale dates or the out-of-pocket loss.
• For shares sold after the close of trading on July 28, 2022, and before the close of trading on Oct. 25, 2022, the recognized loss is the least of the artificial inflation at purchase, the purchase price minus the average closing price up to the sale date (Page 9 of the settlement notice) or the out-of-pocket loss.
• For shares held as of the close of trading on Oct. 25, 2022, the recognized loss is the lesser of the artificial inflation at purchase or the purchase price minus $10.35 (the 90-day lookback average closing price).

• The settlement administrator will set any recognized loss that calculates to a negative number to $0.
• If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a Hayward securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is June 19, 2026.

Settlement administrator's mailing address: Hayward Holdings Inc. Securities Litigation, c/o A.B. Data Ltd., P.O. Box 173127, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings and transaction information, including:

• Number of shares of Hayward common stock held as of the close of trading on Oct. 26, 2021
• Trade dates for purchases, acquisitions and sales from Oct. 27, 2021, through Oct. 25, 2022
• Number of shares purchased, acquired or sold
• Total purchase, sale or acquisition price
• Number of shares held as of the close of trading on Oct. 25, 2022

Class members must also provide documentation to support their transactions in Hayward common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Other documentation of transactions containing the transactional information found in a confirmation slip

Payout options

• Physical check

$19.85 million settlement fund

The $19,850,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $6,616,667
• Attorneys' expenses: Up to $270,000
• Service award to lead plaintiff: Up to $10,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: May 20, 2026
• Deadline to file a claim: June 19, 2026
• Fairness hearing: July 28, 2026

When is the Hayward securities class action settlement payout date?

The settlement administrator will issue payments after the court grants final approval of the settlement, resolves any appeals and processes all claims.

Why did this class action settlement happen?

The class action lawsuit alleged Hayward Holdings Inc. and certain executives made materially false and misleading statements and omissions regarding inventory, growth and demand trends for Hayward's pool products in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The plaintiffs claimed these statements artificially inflated Hayward's stock price and caused investor losses when corrective information entered the market.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form