WINCHESTER, Va.--(BUSINESS WIRE)--Aug. 22, 2013--
Trex Company, Inc. (NYSE:TREX), the world’s largest manufacturer of
high-performance wood-alternative decking and railing, announced that on
August 19, 2013, the U.S. District Court for the Northern District of
California granted preliminary approval of a Settlement Agreement that
will resolve a nationwide class action lawsuit filed in California
alleging certain misrepresentations and defects in Trex’s
first-generation composite products relating to mold growth and color
issues.
Under the terms of the settlement, Trex will provide to qualified
claimants a one-time cash payment or the opportunity to receive other
relief, including a rebate certificate on its newer-generation shelled
products (Trex Transcend® and Trex Enhance®). This relief would be
available for any eligible consumer whose first-generation composite
product has a certain level of mold growth, color fading or color
variation and who meets certain other requirements, as set forth in the
Settlement Agreement. The settlement applies to any Trex
first-generation composite product purchased between August 1, 2004 and
the date on which the Court enters its Order granting preliminary
approval of the settlement. The claim resolution process and other terms
of the settlement are described in the Settlement Agreement and class
notice, which will soon be available on www.trex.com/legal/2013classactionsettlement.aspx.
The cost to Trex under the settlement is capped at $8.25 million plus
$1.475 million in attorneys’ fees to be paid to the Plaintiffs’ counsel
upon final approval of the settlement by the Court.
“Our decision to settle the case is by no means an admission of any of
the allegations made by the plaintiffs,” said Ronald Kaplan, chairman,
president and CEO of Trex. “Trex has steadfastly denied any liability
and we were fully prepared to defend our position. We strongly believe
we would have prevailed; however, we settled on terms that we feel
benefit both our consumers and Trex. This settlement allows our company
to avoid additional expensive, time-consuming litigation and to focus on
delivering quality products and service to consumers, while providing
certain relief to those customers affected by these issues.”
“The growth of mold on first-generation composite decks is not exclusive
to Trex and is not due to any defect in the material. Rather, these
issues are the result of environmental conditions that affect all
outdoor surfaces. Trex fully discloses that Trex boards, like any
exterior surface, require periodic cleaning, and mold growth may occur
if the necessary environmental conditions are present. We also include
instructions on how to clean mold both on our website and in collateral
materials. In addition, we clearly communicate to consumers that the
original wood-plastic composite product, similar to real wood, develops
a naturally weathered look over time and to expect color variation
between boards.
“Although this information is and has been readily provided and
available, for a very small percentage of our consumers, their
expectations for our first-generation composite products may not have
been fully met due to mold problems and/or color fading or color
variation. This settlement will provide certain relief to eligible
consumers who have not been fully satisfied.
“Similar class action lawsuits have been brought against a number of
Trex’s competitors, and one company has previously settled such a case.
“For consumers who want decking that offers higher performance and less
maintenance than the first-generation composite products, we developed
and introduced Trex Transcend® in 2010. This revolutionary
product has a proprietary shell that provides superior fade, stain,
scratch and mold resistance. We even provide a warranty against food and
mold staining, and color fading. More recently, we introduced two
additional high-performance shelled decking collections, Trex Enhance®
and Trex Select®.
“These new products now can be found in many backyards and are being
enjoyed by consumers across the nation,” added Kaplan. “By the end of
2013, high-performance shelled decking, such as Transcend, Enhance and
Select will be all that Trex makes.”
About Trex Company
Trex Company is the world’s largest manufacturer of high performance
wood-alternative decking and railing, with more than 20 years of product
experience. Stocked in more than 6,000 retail locations worldwide, Trex
outdoor living products offer a wide range of style options with fewer
ongoing maintenance requirements than wood, as well as a truly
environmentally responsible choice. For more information, visit trex.com.
You also can follow Trex on Twitter (@Trex_Company) or Pinterest
(trexcompany), “like” Trex on Facebook, or view product and
demonstration videos on the brand’s YouTube channel (TheTrexCo.).
Source: Trex Company, Inc.
Media
L.C. Williams & Associates
Heather Sexton or Alison
Hamer
800-837-7123 or 312-565-3900
hsexton@lcwa.com
or ahamer@lcwa.com
or
Investors
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Harriet Fried, 212-838-3777
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