Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against LSB Industries, Inc. (LXU)


NEW YORK, Sept. 28, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of LSB Industries, Inc. (“LSB Industries” or the “Company”) (NYSE:LXU) between May 8, 2015 and August 7, 2015, inclusive (the “Class Period”).

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s costs related to the expansion of the El Dorado Facility would be significantly higher than reported; and, (2) as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On August 7, 2015, the Company revealed that it intended to implement certain recommendations after the Strategic Committee of the LSB Industries Board of Directors reviewed the Company’s business strategy, corporate governance structure, related party transactions and other governance practices of the Company.  Further, the Company announced that the total cost to complete the El Dorado Facility expansion would now be in the range of $660 million to $680, significantly higher that its previous estimates of $495 million to $520 million on May 8, 2015. On this news, shares of LSB Industries declined $12.09 per share, over 34%, to close on August 7, 2015, at $23.01 per share, on heavy volume.  On September 3, 2015, the Company announced that LSB Industries President and Chief Executive Officer Barry H. Golsen had resigned effective immediately.

If you wish to serve as lead plaintiff, you must move the Court no later than November 24, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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