NEW YORK, Feb. 07, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Astec Industries, Inc. (“Astec” or the “Company”) (NASDAQ: ASTE) in the United States District Court for the Eastern District of Tennessee on behalf of those who purchased or acquired the securities of Astec between July 26, 2016 and October 22, 2018, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The Complaint alleges that Defendants made materially false and misleading statements 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.
In a partial disclosure of material issues, on July 24, 2018, Defendants announced unresolved issues with the Company’s Arkansas wood pellet plant customer and their decision to pay $68 million and forgive about $7 million in receivables in exchange for the customer’s release of Astec from its contractual obligations. That day, the price of Astec shares fell about 20%, to close at $48.21. Then, on October 23, 2018, Defendants revealed that Astec could end up owning another pellet plant in Georgia. In contrast, Defendants previously stated Astec would focus on supplying equipment to the pellet plant industry. This news drove the price of Astec shares down 25% to close at $35.51 that day.
Subsequent to the end of the Class Period, on January 22, 2019, the Company announced that effective immediately, Benjamin G. Brock had resigned as Chief Executive Officer of the Company.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the April 2, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish 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.
Please visit our website at http://www.gme-law.com for more information about the firm.