INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit against Astec Industries, Inc.
February 08 2019 - 9:00PM
Business Wire
The law firm of Kirby McInerney LLP announces that a class
action lawsuit has been filed in the U.S. District Court for the
Eastern District of Tennessee on behalf of those who acquired Astec
Industries, Inc. (“Astec” or the “Company”) (NASDAQ:ASTE)
securities during the period from July 26, 2016 through October 22,
2018 (the “Class Period”). Investors have until April 2, 2019 to
apply to the Court to be appointed as lead plaintiff in the
lawsuit.
The lawsuit alleges that Astec failed to disclose adverse
information regarding its business, operations and prospects,
including that its wood pellet plants suffered from significant and
costly problems that prevented them from running at their promised
production capacity, posing a threat to the Company’s pellet plant
business, its overall financial performance, and its financial
outlook.
On July 24, 2018, Astec announced financial results for the
second quarter of 2018 and disclosed that the Company was exiting
from its contractual obligations concerning the Highland wood
pellet plant in Arkansas due to “the plant’s ability to meet
contractual provisions by the date required by the Company’s sales
contract with Highland.” Therefore, the Company “agreed to pay $68
million in cash in the aggregate over the course of the next 120
days and forgive approximately $7 million in receivables.” On this
news, shares of Astec fell $12.59 per share or more than 20%, to
close at $48.21 on July 24, 2018.
Then on January 22, 2019, the Company announced that effective
immediately, Benjamin Brock had resigned as Chief Executive Officer
of the Company.
If you acquired Astec securities during the Class Period, have
information, or would like to learn more about these claims, please
contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by
email at investigations@kmllp.com, or by filling out this contact
form, to discuss your rights or interests with respect to these
matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm
concentrating in securities, antitrust, and whistleblower
litigation. The firm’s efforts on behalf of shareholders in
securities litigation have resulted in recoveries totaling billions
of dollars. Additional information about the firm can be found at
Kirby McInerney’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20190208005478/en/
Kirby McInerney LLPThomas W. Elrod, Esq., (212)
371-6600investigations@kmllp.comwww.kmllp.com
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