IAL International Alum Corp

Plaintiff Expresses Concern over IAL's Recent 10Q Filing Notice of a class action lawsuit against International Aluminum Corp. (NYSE:IAL) and two of its wholly-owned subsidiaries, International Window Corp., and General Window Corp. dba International Window Northern California, is being released this week in major California newspapers; online at www.internationalaluminumwindowlitigation.com, and via direct mail to more than 10,000 dealers, and home- and business-owners, according to Eppsteiner & Smith, LLP, and Milstein, Adelman & Kreger, LLP. The notice of class action outlines a lawsuit involving IAL's Series 6200 horizontal sliding; vertical hung, and fixed aluminum windows. The suit alleges that the windows are inherently defective in their design and manufacture, and as a result leak, sometimes into the interior walls of homes or businesses often without the knowledge of the owner. The lawsuit (SHERI KLOTZER, et al., Plaintiffs, vs. INTERNATIONAL WINDOW CORPORATION, et al.) seeks to recover the cost to remove and replace the defective windows, and related damages. The plaintiffs estimate the total number of defective windows to be in excess of 1.1 million in approximately 80,000 homes and businesses in California. According to the plaintiffs' attorneys, IAL has a potential liability of $300 million to $1.1 billion. The "class" is composed of all persons who own buildings in California that contain International's Series 6200 aluminum windows manufactured by International from 1993 to the present. IAL is based in Monterey Park, CA. With the class action notices going out this week and a trial date to be set in April, the plaintiffs' attorneys expressed concern about IAL's Dec. 31, 2005 10Q report, saying the company failed to disclose to shareholders and investors both the potentially significant financial impact of the litigation and its advanced status. "While IAL disclosed the existence of the lawsuit, it failed to disclose its potentially significant damages, which could exceed $1 billion," said Stuart Eppsteiner, Esq., of Eppsteiner & Smith, LLP, who, along with Paul Stevens, Esq. of Milstein Adelman & Kreger, LLP, is representing the plaintiffs. Additionally, IAL's 10Q filing states that "the suit is in its preliminary stages and no prediction can be made as to its eventual outcome." In fact, the suit was filed in 2002 and certified as a class action by the Superior Court on Nov. 15, 2005. Attorneys said they expect a trial date to be set at an April 19, 2006 court hearing. "Certainly a case that has been certified and is ready to receive a date for trial is no longer in the preliminary stages," Eppsteiner said. Also in its 10Q filing, IAL reported to stockholders that the "the company believes that plaintiffs' claims are without merit," indicating the lawsuit is little more than a nuisance. However, Eppsteiner said the plaintiffs' expert investigation revealed that 100 percent of the vertical sliding windows in question, and 75 percent of the horizontal sliding windows in question, leaked when tested. Additionally, he cited several recent court decisions that continue to allow the class action to move forward. On Jan. 12, the California Court of Appeal, First Appellate District denied IAL's petition for appellate review, and subsequently, the California Supreme Court denied IAL's petition for review and its application for stay. Stuart Eppsteiner, Esq. of Eppsteiner & Smith, LLP in Solana Beach and Paul Stevens, Esq. of Milstein, Adelman & Kreger, LLP in Santa Monica, represent the plaintiffs in this case. William Staples, Esq. of Archer Norris in Walnut Creek, and Stephen Zovickian, Esq. of Bingham McCuthen in San Francisco represent International Aluminum Corporation and its subsidiaries. Editor's Note: For background documents or interviews with the plaintiffs' attorneys, contact Danielle Fairlee at DSF Communications: Danielle@dsfcommunications.com, or 818-346-7110.