NEW YORK, Feb. 05, 2019 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal class action lawsuit has been filed in the United States District Court for the Eastern District of Tennessee on behalf of investors that acquired Astec Industries, Inc. (“Astec” or the “Company) (NASDAQ: ASTE) securities between July 26, 2016 and October 22, 2018, inclusive (the “Class Period”).
Investors who purchased shares of Astec Industries, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the shares of Astec Industries, Inc., you may, no later than April 2, 2019, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Astec Industries, Inc.
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The filed Complaint alleges that Defendants made materially false and misleading statements and/or failed to disclose material adverse information 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.
Wolf Haldenstein Adler Freeman & Herz LLP 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 by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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