NEW YORK, Oct. 02, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of investors who purchased or otherwise acquired the securities of securities of LSB Industries, Inc. ("LSB" or the "Company") (NYSE:LXU) during the period of May 8, 2015 and August 7, 2015, inclusive (the "Class Period"). Shareholders of LSB Industries, Inc. with losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
If you purchased the shares of LSB during the period from May 8, 2015 and August 7, 2015, inclusive, you may, no later than November 24, 2015, request that the Court appoint you lead plaintiff of the proposed class.
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 that, (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 May 8, 2015, LSB estimated the total cost related to the expansion of its El Dorado Facility to be in the range of $495 million to $520 million. On July 14, the Company raised its cost estimate for the expansion to be in the range of $560 million to $575 million due to "productivity and quality issues with a subcontractor responsible for the installation of piping in the ammonia plant."
Then, on August 7, 2015, LSB disclosed that the total cost to complete the El Dorado Facility expansion would be in the range of $660 million to $680, significantly higher than its May and July 2015 estimates, "due, in part, to work performed by a previous subcontractor." LSB further 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.
On this news, shares of LSB declined $12.09 per share, over 34%, to close on August 7, 2015, at $23.01 per share, on heavy volume. Subsequently, on September 3, 2015, the Company announced that LSB President and Chief Executive Officer Barry H. Golsen had resigned effective immediately.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “LSB Industries Investigation.”
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