Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Rentech (NASDAQ: RTK) in connection to alleged violations of securities laws by RTK and certain of its officers. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Rentech between November 9, 2016 through February 20, 2017.
The class action complaint specifically alleges that during the period in question, RTK and certain of its officers might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company failed to disclose its lack of resources necessary to resolve operating difficulties, as well as a bottleneck issue, in its Wawa facility, and that the same facility was not going to produce 60% of its production capacity in the following quarters or reach full capacity the next year. When Rentech announced, in a press release on February 21, 2017, that it planned to idle the facility as a result of operating concerns, requiring greater capital resources, RTK declined in value, according to the lawsuit.
According to the company’s website, Rentech “offers a full range of integrated fibre services including, wood chipping, operations, marketing, trading and vessel loading” through its subsidiary Fulghum Fibers. The description continues: “Over the past 25 years, Fulghum Fibres has grown to become one of the largest independent processors of wood fibre for the pulp, paper and packaging industry. We process approximately 15 million tonnes of wood and bark annually into high quality wood chips and residual fuels. Rentech’s New England Wood Pellet subsidiary is the largest producer of bagged pellets for the growing U.S. heating market. Known for its high-quality products, New England Wood Pellet commands an approximate 15% share of the market for heating pellets in the U.S. Northeast. The company is one of the largest suppliers of wood pellets to major retailers including Home Depot, Lowe’s, and Tractor Supply.”
A class action lawsuit has already been filed in connection with Rentech. If you wish to serve as lead plaintiff in the RTK lawsuit, you must move the Court no later than April 24, 2017. If you wish to join the litigation, please contract Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.