NEW YORK, March 11, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Astec Industries, Inc. ("Astec" or the "Company") (NASDAQ:ASTE) of the April 2, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Astec stock or options between July 26, 2016 and October 22, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/ASTE. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of Tennessee on behalf of all those who purchased Astec securities between July 26, 2016 and October 22, 2018 (the "Class Period"). The case, City of Taylor General Employees Retirement System v. Astec Industries, Inc. et al., No. 1:19-cv-00024 was filed on February 1, 2019, and has been assigned to Judge Pamela L. Reeves.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by: 1) misleadingly using pellet plant sales and revenue to improve the Company's reported financial performance, despite the fact that the pellet plants suffered from material defects and undisclosed problems; 2) failing to disclose that the Company's pellet plants suffered from significant problems that prevented them from meeting their intended and/or required production capacity; and 3) failing to disclose that significant problems with the Company's pellet plants were preventing the Company from securing additional pellet plant orders.
Specifically, on July 24, 2018, the Company reported disappointing financial results for Astec's second quarter of 2018, abruptly announcing that the Company would substantially limit its wood pellet business, that it was giving up on its plans to engineer and develop the Highland wood pellet plant in Arkansas, and that it was limiting its participation in the development of other new pellet plants.
On this news, the Company's stock price fell from $60.80 per share on July 23, 2018 to $48.21 per share on July 24, 2018—a $12.59 or 20.71% drop.
Then, before the market opened on October 23, 2018, the Company surprised investors again by reporting third quarter 2018 results that fell well short of the low end of the Company's guidance and the market's expectations.
On this news, the Company's stock price fell from $47.27 per share on October 22, 2018 to $35.41 per share on October 23, 2018—an $11.86 or 25.9% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Astec's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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