Atkore Inc. (NYSE: ATKR) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS APRIL 23, 2025.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired Atkore Inc. (“Atkore”) (NYSE: ATKR) common stock between February 1, 2024, and February 3, 2025, inclusive (the “Class Period”).

Based in Harvey, Illinois, Atkore purports to be a leading manufacturer of electrical, safety, and infrastructure products. Among other products, Atkore manufactures polyvinyl chloride (“PVC”) water pipes and electrical conduit pipes (together, “PVC Pipes”). During the COVID-19 pandemic, shipping costs skyrocketed. As result, foreign manufacturers found themselves unable to profitably sell their PVC Pipes in the United States. Atkore and other U.S.-based PVC Pipe manufacturers took advantage of the absence of foreign competition, exchanging confidential and competitively sensitive data in order to artificially inflate PVC Pipe pricing.

Leading up to the Class Period, shipping prices returned to normal levels following the pandemic, which led to foreign PVC Pipe manufactures gradually re-entering the market. Beginning in late 2022, as the sales price of PVC Pipes began declining, Atkore informed investors that “part of the pricing outperformance that we’ve enjoyed over the past several years has started to normalize.”

Throughout the Class Period, Atkore repeatedly claimed that the post-pandemic PVC Pipe price declines were based only on normal supply and demand competition and assured the market that Atkore would continue to be successful in a competitive post-COVID market. For instance, on February 1, 2024, the first day of the Class Period, Atkore issued a press release announcing its financial results for the first quarter of its fiscal year 2024, ended December 29, 2023. In the press release, Atkore reported net sales of $798.5 million— down 4.2% year-over-year attributed to, among other things, “decreased average selling prices across the company’s products of $130.4 million as a result of expected pricing normalization.” During the accompanying earnings call held that same day, Atkore’s CFO explained that volume growth was offset by “price normalization,” stating, “I’m pleased by our strong volume performance in the quarter with organic volumes up over 13%. These gains were offset by the continued pricing normalization, but this impact was within expectations and aligns with the pricing trends we have been discussing for the past several years.” During that same earnings call, a Loop Capital Market analyst asked whether there were “any changes in the competitive landscape.” In response, Atkore’s CEO claimed there was “[n]othing of significance,” and “[t]here’s always minor players that try to enter noise level things, so somebody importing a product because of things.” In response to the same question, Atkore’s CFO added, “there are a lot of reasons why [] we do well and that the competitive landscape is fairly stable year-over-year.”

On July 24, 2024, the short seller firm ManBear published a short report titled “Pipe Price Fixing” (the “Short Report”). The Short Report accuses Atkore and three other PVC Pipe manufacturers of using the commodity pricing service OPIS to coordinate pricing actions, thereby fixing PVC Pipe prices. The Short Report asserts that the price fixing scheme “resulted in massively inflated” PVC Pipe prices that “defy economic logic.” The Short Report further notes that PVC Pipe prices “remain at extremely elevated levels despite normalized supply chains, normalized input costs (resin), and weak demand,” with “PVC municipal [water pipe] and conduit prices” holding “4.7x and 2.7x above pre-Covid levels, respectively.” Just two weeks later, during an earnings call in connection with Atkore’s financial results for third quarter of fiscal year 2024, Atkore’s CEO dismissed the allegations in the Short Report, stating, “I’m going to claim that report is unsubstantiated from the conclusions it tries to make.”

On February 4, 2025, Atkore announced its financial results for the first quarter of fiscal year 2025, reporting net sales of $661.6 million-below analysts' estimates of $680.7 million. Additionally, Atkore significantly reduced its adjusted EPS and adjusted EBITDA guidance for the rest of fiscal year 2025, which also missed analysts' estimates. During the corresponding earnings call that same day, Atkore's CFO disclosed that Atkore's "plastic pipe and conduit product category declined mid-single digits during the quarter[,]" compared to "high single digits in the prior year." During that same call, Atkore’s CFO attributed the guidance reduction to the forthcoming poor performance of Atkore's PVC business, stating, "I'd say roughly $75 million or 3/4 of that is on the PVC side."  

On this news, the price of Atkore common stock fell $15.59 per share, or nearly 20%, from a closing price of $79.72 per share on February 3, 2025, to a closing price of $64.13 per share on February 4, 2025.

The complaint alleges that, throughout the Class Period, Defendants made false and misleading statements and/or failed to disclose that: (1) Atkore engaged in an anticompetitive price-fixing scheme that artificially inflated the price of PVC Pipes; (2) in turn, Atkore reaped significant, unsustainable financial benefits from its anticompetitive conduct; (3) as Atkore’s price-fixing scheme was exposed, Atkore and its price fixing co-conspirators were no longer able to artificially inflate the price of PVC Pipes, resulting in a substantial decrease in the price of PVC Pipes; (4) Atkore’s business and operations were negatively impacted; and (5) as a result of the foregoing, Defendants’ positive statements about Atkore’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.  
 

What is a Lead Plaintiff?

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.