NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Astec Industries, Inc. (“Astec” or the “Company”) (NASDAQ:ASTE), and certain other defendants, related to alleged violations of federal securities laws. If you purchased Astec common stock between July 26, 2016 and October 22, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information.
Astec designs, engineers, manufactures, markets, and finances equipment and components, including aggregate crushers, pavers, asphalt plants, and wood pellet plants.
The lawsuit, which was filed in the U.S. District Court for the Eastern District of Tennessee, alleges that Defendants made false and misleading statements and/or failed to disclose adverse information regarding Astec’s 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. As a result, Astec’s stock traded at artificially inflated prices.
On July 24, 2018, Astec revealed its 2018 second quarter financial results and announced that it was exiting from its contractual obligations concerning the Highland wood pellet plant in Arkansas, resulting in the Company agreeing to pay $68 million in cash over the course of the next 120 days and it forgiving approximately $7 million in receivables. On this news, Astec’s stock dropped $12.59 per share, or over 20%, to close at $48.21 on July 24, 2018.
On October 23, 2018, the Company reported its 2018 third quarter financial results, which, according to the lawsuit, fell well short of the low end of the Company’s guidance and the market’s expectations. On this news, Astec’s stock declined nearly 25% on heavy trading volume.
Then, on January 22, 2019, Astec revealed that its Chief Executive Officer, Benjamin G. Brock, had resigned effective immediately. Following this news, Astec stock dropped $1.86 per share, or roughly 5%, over the next two trading days to close at $35.97 on January 23, 2019.
What You Can Do
If you purchased Astec stock between July 26, 2016 and October 22, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982 or jpettigrew@scott-scott.com. The lead plaintiff deadline is April 2, 2019.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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