NEW YORK, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Rentech, Inc. (“RTK” or the “Company”) (Nasdaq:RTK) in the United States District Court for the Central District of California on behalf of persons or entities who purchased Rentech stock on the open market from November 9, 2016 and February 20, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s resources were not sufficient to overcome any operating challenges and remaining bottleneck at its Wawa facility; (2) consequently, the Wawa facility would not reach approximately 60% of production capacity within the next couple quarters and achieve full capacity in the range of 400,000 to 450,000 metric tons late in the year; (3) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
On February 21, 2017, the Company announced its decision to idle the Wawa facility due to equipment and operational issues that would require additional capital investment. On this news, shares of the Company fell over 47% from its previous closing price to close at $1.44 per share on February 21, 2017.
If you wish to serve as lead plaintiff, you must move the Court no later than April 24, 2017. 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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