SAN DIEGO & CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Astec Industries, Inc. (NasdaqGS: ASTE) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between July 26, 2016 and October 22, 2018. Astec designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/astec-industries/
Astec Accused of Misrepresenting Capability of Its Wood Pellet Plants
According to the complaint, Astec represented itself as the world's only single-source complete wood pellet manufacturer and noted that it could produce saleable pellets months ahead of what any competitor could accomplish. Despite these assurances, Astec's 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 financial performance and outlook. Astec surprised the market when it announced in July 2018 that it was substantially limiting its wood pellet business and giving up on its plans to engineer and develop its wood pellet plant in Arkansas. Astec again disappointed investors when it revealed in October 2018 that third quarter 2018 financial results fell short of expectations. Since news of Astec's troubles became public, the company's stock price has fallen over 41%, and has yet to recover.
Astec Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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