NEW YORK, March 7, 2019 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Astec Industries, Inc. ("Astec" or the "Company") (NASDAQ: ASTE), and certain other defendants, related to alleged violations of federal securities laws. If you purchased Astec common stock between July 26, 2016 and October 22, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information. The lead plaintiff deadline is April 2, 2019.
The complaint alleges that Defendants made false and misleading statements and/or failed to disclose 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.
On July 24, 2018, Astec revealed its 2018 second quarter financial results and announced that it was exiting from its contractual obligations concerning the Highland wood pellet plant, resulting in the Company agreeing to pay $68 million in cash over the course of the next 120 days and forgiving approximately $7 million in receivables. On this news, Astec's stock dropped $12.59 per share, over 20%, to close at $48.21.
On October 23, 2018, the Company reported its 2018 third quarter financial results, which fell well short of the low end of the Company's guidance and the market's expectations. On this news, Astec's stock declined nearly 25%.
Then, on January 22, 2019, Astec revealed that its CEO, Benjamin G. Brock, had resigned effective immediately. Following this news, Astec stock dropped roughly 5% over the next two trading days.
What You Can Do
If you purchased Astec stock between July 26, 2016 and October 22, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982 or firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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