Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against LSB Industries, Inc.
September 28, 2015
Bernstein Liebhard LLP today alerts investors that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers (the “Class”) of securities of LSB Industries, Inc. (“LSB” or the “Company”) (NYSE: LXU) during the period of May 8, 2015 and August 7, 2015, inclusive (the “Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
On May 8, 2015, LSB estimated the total cost related to the expansion of its El Dorado Facility to be in the range of $495 million to $520 million. On July 14, the Company raised its cost estimate for the expansion to be in the range of $560 million to $575 million due to “productivity and quality issues with a subcontractor responsible for the installation of piping in the ammonia plant.”
Then, on August 7, 2015, LSB disclosed that the total cost to complete the El Dorado Facility expansion would be in the range of $660 million to $680, significantly higher that its May and July 2015 estimates, “due, in part, to work performed by a previous subcontractor.” LSB further revealed that it intended to implement certain recommendations after the Strategic Committee of the LSB Industries Board of Directors reviewed the Company’s business strategy, corporate governance structure, related party transactions and other governance practices of the Company.
On this news, shares of LSB declined $12.09 per share, over 34%, to close on August 7, 2015, at $23.01 per share, on heavy volume. On September 3, 2015, the Company announced that LSB President and Chief Executive Officer Barry H. Golsen had resigned effective immediately.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s costs related to the expansion of the El Dorado Facility would be significantly higher than reported; and that, (2) as a result of the foregoing, the Company’s statements about its business, operations and prospects were false and misleading and/or lacked a reasonable basis.
Plaintiffs seek to recover damages on behalf of all Class members who purchased LSB securities during the Class Period. If you purchased LSB securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than November 24, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.