WINCHESTER, Va.--(BUSINESS WIRE)--Jul. 31, 2009--
Trex Company, Inc. (NYSE: TWP), the nation’s leading manufacturer and
distributor of wood alternative decking, railing, fencing and trim,
announced today that it has entered into a Settlement Agreement that
will resolve a class action suit filed in California by a group of
plaintiffs’ class action law firms alleging certain product defects. The
settlement was preliminarily approved by the U.S. District Court for the
Northern District of California on July 30, 2009. The Court has set a
hearing for final approval on October 30, 2009.
In this suit, two customers of Trex decking product alleged that their
decks suffered from surface flaking and that Trex failed to provide
adequate remedies. In 2007, Trex fully and publicly disclosed that a
manufacturing problem affected a small percentage of product
manufactured in its Fernley, Nevada plant beginning in 2003. This issue
was entirely isolated to parts of the West Coast, only affected a small
percentage of Trex decking materials produced in the Nevada plant, and
has since been remediated.
Under the settlement, Trex will continue to fully honor its warranty by
replacing product, and also will provide partial reimbursement of labor
expenses to affected consumers, the amount of which will be dependent on
the size of the deck. The claim resolution process is described in the
Settlement Agreement and class notice.
Ronald Kaplan, president and CEO of Trex Company, stated, “Our decision
to settle the case is not an admission of any of the allegations made by
the plaintiffs but rather a way to avoid expensive and time-consuming
litigation. Trex has steadfastly stood behind our warranty with respect
to all affected product. Although we were fully prepared to defend this
action and we strongly believe we would have prevailed, we were offered
the opportunity to settle on terms that we feel are a win-win for both
Trex and our consumers.”
Mr. Kaplan added, “Trex always has prided itself on customer service.
Although the product defect only affected a small percentage of our
product, we regret when any Trex customer has a less than fully
satisfactory experience with our product. We believe that under these
circumstances, providing partial labor reimbursement and going above and
beyond our warranty obligations is a fair and reasonable settlement of
this lawsuit. This settlement will allow our company to quickly and
efficiently remove this distraction and continue to focus on delivering
our award-winning products and high-quality service to our customers.”
Jonathan D. Selbin, a partner at Lieff, Cabraser, Heimann & Bernstein,
LLP, one of the co-lead counsel for the plaintiffs, stated, "We commend
Trex for stepping up to the plate and resolving the surface flaking
dispute."
About Trex Company
Trex Company is the nation’s largest manufacturer of composite decking,
railing, fencing and trim, with over 15 years of product experience.
Built on “green” principles and values, Trex makes its products from a
unique formulation of reclaimed wood and plastic, combined through a
proprietary process. Trex decking, railing, fencing and trim offer
significant design flexibility with fewer ongoing maintenance
requirements than wood, as well as a truly environmentally responsible
choice. In addition, Trex distributes ultra-low maintenance PVC decking
under the trademark Trex Escapes® and PVC trim under the trademark Trex
Trim™. For more information, visit the Company’s website, www.trex.com.
Trex®, Trex Escapes® and Trex Trim™ are trademarks of Trex Company,
Inc., Winchester, Va.
The statements in this press release regarding the Company's expected
future performance and condition and its business strategy constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. These statements are subject to risks and uncertainties that could
cause the Company's actual operating results to differ materially. Such
risks and uncertainties include the extent of market acceptance of the
Company's products; the sensitivity of the Company's business to general
economic conditions; the Company's ability to obtain raw materials at
acceptable prices; the Company's ability to maintain product quality and
product performance at an acceptable cost; the level of expenses
associated with product replacement and consumer relations expenses
related to product quality; and the highly competitive markets in which
the Company operates. The Company's report on Form 10-K filed with the
Securities and Exchange Commission on March 12, 2009 and its subsequent
report on Form 10-Q filed on May 8, 2009 discuss some of the important
factors that could cause the Company's actual results to differ
materially from those expressed or implied in these forward-looking
statements. The Company expressly disclaims any obligation to update or
revise publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
Source: Trex Company
Media:
L.C. Williams & Associates
Heather Hahn or Allison
Kurtz
800-837-7123 or 312-565-3900
hhahn@lcwa.com
or akurtz@lcwa.com
or
Investors:
Lippert/Heilshorn
& Associates
Harriet Fried, 212-838-3777
hfried@lhai.com