The lawsuit alleges that Pentair made materially false and/or misleading statements and failed to disclose to investors: (i) that there was significant destocking of inventory in the Company's Pool channel; and (ii) as a result, the Company’s sales and operating income were adversely affected.
On July 14, 2026, Pentair announced preliminary second quarter 2026 financial results, revealing that “the [Company] estimates that the destocking of inventory in the Pool channel negatively impacted Pool segment sales by approximately $170 million and Pool segment income by approximately $105 million.” As a result, second quarter 2026 sales were expected to be “down 17 percent versus previous guide of up approximately 1 percent,” and full year 2026 sales were expected to be “down approximately 4 percent to 7 percent versus previous guide of up 2 percent to 4 percent.”
The Company explained that second quarter performance “was impacted by a decline in Pool sales largely attributed to a more pronounced inventory realignment with major channel partners than previously estimated and worsening business conditions, including higher interest rates and inflation.”
The Company also announced the departure of its Chief Financial Officer, effective immediately.
On this news, Pentair’s stock price fell $11.35, or approximately 15%, to close at $64.33 per share on July 15, 2026.