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ASTE.US
id: 1166

Astec Industries (ASTE) Wood Pellet Business Settlement

E.D. Tennessee
Court
1:19-cv-00024
Case number
26 Jul 2016
Class period Start
22 Oct 2018
Class period End
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.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
01 February 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
Trades matching type
FIFO

Frequently Asked Questions

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