GPM Announces Investigation of Alleged Fraud at LSB Industries, Inc.
By Business Wire News
By Business Wire News
Glancy Prongay & Murray LLP (“GPM”) announces that it is investigating potential claims on behalf of investors of LSB Industries, Inc. (“LSB” or the “Company”) (NYSE:LXU). The investigation concerns whether the Company violated federal securities laws by issuing materially misleading information regarding its operations and safety standards.
The investigation concerns whether the Company failed to disclose the alleged lack of internal controls and other operational defects including high production costs and inefficient manufacturing practices.
On August 7, 2015, LSB, a manufacturer of chemical products for the agricultural, mining and industrial markets announced that the Strategic Committee of the LSB Board of Directors presented the board with a report and certain recommendations, “following an evaluation of the Company’s business strategy, corporate governance structure, related party transactions and other governance practices of the Company.” These recommendations included better transparency into LSB’s performance, an independent review of LSB’s corporate governance practices, including the compensation for all members of the Golsen family, the executive compensation structure and the shareholder rights plan.
The Chairman of the LSB Strategic Committee further disclosed that, “We look forward to seeing the benefits of these initiatives and continuing to work with the management team as it lowers production costs, improves manufacturing efficiency and drives sales growth which, we believe, will lead to enhanced profitability.” On this news shares of LSB fell $12.09 per share, or 34%, to close on August 7, 2015 at $23.01 per share on volume of nearly two million shares.
If you purchased LSB securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Casey Sadler, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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