Case: Astec Industries, Inc.
Venue: Eastern District of Tennessee
Class Period: 7/26/2016 - 10/22/2018
Lead Plaintiff Deadline: 4/2/2019
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NEW YORK, NY – February 14, 2019 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Astec Industries, Inc. (“Astec” or the “Company”) (NASDAQ: ASTE).  Investors who purchased Astec stock between July 26, 2016 and October 22, 2018, inclusive (the “Class Period”), may be affected.  A complaint has been filed in the United States District Court for the Eastern District of Tennessee against Astec, its Chief Executive Officer and its Chief Financial Officer on behalf of investors of Astec stock during the Class Period.

On July 24, 2018, Astec issued a press release reporting the Company’s financial results for the second quarter ended June 30, 2018.  In the press release the Company announced that due to unresolved issues with the Company’s Arkansas wood pellet plant customer, Highland, including an inability to meet contractual provisions by the date required by the Company’s sales contract with Highland, Astec had agreed to pay $68 million in cash and to forgive approximately $7 million in receivables in exchange for the customer’s release of Astec from its contractual obligations.  Additionally, the Company announced that its redefined wood pellet plant strategy would “limit its participation in the wood pellet plant markets to offering proven technology for sale as an equipment supplier, not as an Engineer, Procure, Construct (EPC) organization or a participating lender on wood pellet plant project.”

Following this news, Astec’s stock price fell by $12.59 per share, or nearly 21%, to close at $48.21 per share on July 24, 2018.

Then, on October 23, 2018, Astec announced its financial results for the third quarter ended September 30, 2018.  Astec reported a 1.2% decrease in domestic sales and a 20.2% decrease in the Company’s backlog, with the domestic backlog contracting by 28.1% dragged down by Astec’s pellet business. Additionally, for 2018, Astec cut its core revenue growth forecast to 1% to 3%, down substantially from 7% to 12%.  

Following this news, Astec’s stock price fell by $11.76 per share, or nearly 25%, to close at $35.51 per share on October 23, 2018.

If you are a member of the proposed Class, you may move the court no later than April 2, 2019 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 800-290-1952.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or your interests, please contact: 

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
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Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400 
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
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