LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors of the April 2, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of investors that purchased Astec Industries, Inc. (“Astec” or the “Company”) (NASDAQ: ASTE) securities between July 26, 2016 and October 22, 2018, inclusive (the “Class Period”) Astec investors have until April 2, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
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 "driven by unresolved issues, which inhibited 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, thereby injuring investors.
Then on January 22, 2019, the Company announced that effective immediately, Benjamin G. Brock had resigned as Chief Executive Officer of the Company.
The Complaint filed in this class action alleges that Defendants made materially false and misleading statements and/or failed to disclose material 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.
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If you purchased shares of Astec, you may move the Court no later than April 2, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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