NEW YORK--(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 email@example.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.
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