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ASTE.US
id: 1166

Astec Industries (ASTE) $13.7 Million Shareholder Settlement

Late claims are being considered for compensation, subject to approval.
E.D. Tennessee
Court
1:19-cv-00024
Case number
07/26/2016
Class period Start
10/22/2018
Class period End
08/08/2024
Claim deadline
Astec Industries reached an agreement with $ASTE investors to settle claims for their wood pellet business issues and disappointing financial results.

Case Details:

On July 25, 2017, Astec disclosed lower margins for its wood pellet plant, causing $ASTE to drop around 8%.

One year later, Astec reported disappointing financial results for Q2 2018.
  • They decided to cut back on their wood pellet business, dropping plans for Arkansas and reducing involvement in other new pellet plant projects.
$ASTE plummeted by 20% after the news.

On October 23, 2018, Astec reported Q3 2018 results below both its guidance and the market's expectations.
  • Astec's 2018 revenue growth forecast was revised significantly downwards.
  • Earnings per share for the quarter fell short of expectations, leading to a nearly 25% drop in $ASTE.
Based on these events, Astec was accused of the following:
  • Wood pellet plants had issues meeting promised production levels.
  • These problems posed risks to the company's financial performance and outlook.
Astec Industries reached an agreement with $ASTE investors to settle claims for their wood pellet business issues and disappointing financial results.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.15
Filing date
02/01/2019
Plaintiffs
Lynn Johnson
Attorneys
Bramlett Law Offices, The Rosen Law Firm P.A.
Defendants
Benjamin G. Brock, David C. Silvious
Judge
Charles E. Atchley
Administrator
Strategic Claims Services
Court hearing date
09/05/2024
Exclusion deadline
08/08/2024
Objection deadline
08/08/2024
Attorney fee
$4,896,666
Trades matching type
FIFO
+$13,700,000
Cash Settlement Amount

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Astec Industries Inc

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components used primarily in road building and related construction activities worldwide. The company operates in ...

    Ticker
    ASTE.US
    ISIN
    US0462241011
    CIK
    792987
    Sector
    Industrials
    Industry
    Farm & Heavy Construction Machinery
    Country
    USA
    Address
    1725 Shepherd Road, Chattanooga, TN, United States, 37421