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Posted August 1, 2009 | Copyright © The Northern Virginia Daily
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Trex settles class-action suit
WINCHESTER — Trex said late Friday it has settled a class-action lawsuit filed in California by a group who claimed the composite decking manufacturer’s products were defective.
According to the company, two customers alleged that their decks suffered from surface flaking and that Trex failed to provide adequate remedies.
In 2007, Trex disclosed a manufacturing problem at its Fernley, Nev., plant going back to 2003. The issue only affected a small portion of product at the plant, was isolated to customers on the West Coast and has since been remedied, the company said.
Under the settlement agreement, Trex will replace the product and provide partial reimbursement of labor expenses to affected customers, depending on the size of their deck.
“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,” President and CEO Ronald W. Kaplan said in a statement.
Trex’s net income for the quarter ended June 30 totaled $7.4 million, or 49 cents a share, up from $6.5 million, or 43 cents a share, for the same quarter in 2008. Year-over-year sales fell slightly to $91.5 million.
— Daily Staff Report
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