Hayward Holdings $19.85M Securities Class Action Settlement

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

Hayward Holdings Inc. agreed to pay $19.85 million to settle a securities class action lawsuit alleging the company and certain executives made materially false and misleading statements regarding inventory, growth and demand trends for its pool products. The lawsuit claimed these misrepresentations inflated Hayward's stock price and caused investor losses when the public learned the alleged truth.

Who can file a claim?

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

Additional details

• Both individuals and entities can be class members.
• Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
• Joint owners must each sign the claim form.

How much is the Hayward payout?

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, matching purchases, acquisitions and sales on a first-in, first-out basis.
• The alleged artificial inflation per share is:
• $6.76 for shares purchased Oct. 27, 2021, through Jan. 21, 2022
• $4.89 for shares purchased Jan. 24, 2022, through May 2, 2022
• $2.86 for shares purchased May 3, 2022, through July 27, 2022

• For shares sold before the opening of trading on Jan. 24, 2022, the recognized loss is $0.
• For shares sold after the opening of trading on Jan. 24, 2022, and before 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 from July 28, 2022, through the sale date 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 average closing price during the 90-day lookback period).

• The settlement administrator will set any recognized loss that calculates to a negative number to $0.
• If total recognized losses 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 Holdings 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, purchase and sale information, including:

• Number of shares held as of the close of trading on Oct. 26, 2021
• Trade dates for purchases and acquisitions from Oct. 27, 2021, through Oct. 25, 2022
• Number of shares purchased, acquired or sold
• Total purchase, acquisition or sale 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
• Authorized statements from a broker, financial advisor or financial institution

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 $6,616,666.67
• 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

• 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 it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Hayward Holdings and certain executives made materially false and misleading statements regarding inventory, growth and demand trends for the company's pool products. The plaintiffs claimed these misrepresentations inflated Hayward's stock price and caused investor losses when the public learned the alleged truth and the stock price declined.

Hayward 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