Astec Industries, Inc. (NASDAQ: ASTE)
Hagens Berman Sobol Shapiro LLP reminds investors in Astec Industries, Inc. (NASDAQ: ASTE) of the April 2, 2019 Lead Plaintiff deadline in the securities class action pending in the U.S. District Court for the Eastern District of Tennessee.
If you purchased or otherwise acquired shares of ASTE between July 26, 2016 and October 22, 2018 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information, contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing ASTE@hbsslaw.com.
According to the complaint, during the class period Defendants misled investors about Astec’s pellet plant business.
On July 24, 2018, Defendants partially disclosed 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, in apparent contrast to earlier statements, that Astec could end up owning another pellet plant in Georgia. This news drove the price of Astec shares down 25% to close at $35.51 that day.
In January 2019, Astec’s CEO (Benjamin Brock) resigned.
“We’re focused on investors’ losses, the extent to which investors may have been misled by senior management’s statements, and whether certain insider sales were improper,” said Hagens Berman partner Reed Kathrein.
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