Robbins Arroyo LLP: Rentech, Inc. (RTK) Misled Shareholders According to a Recently Filed Shareholder Derivative
Lawsuit
Shareholder rights law firm Robbins Arroyo LLP announces that a shareholder derivative complaint was filed on behalf of Rentech, Inc. (NASDAQCM: RTK) in the
Superior Court of The District of Columbia. The complaint is brought against certain officers and directors of the company for
alleged breaches of fiduciary duties, gross mismanagement, abuse of control, unjust enrichment, and waste of corporate assets
between November 9, 2016 and the present. Rentech, through its subsidiaries, provides wood fiber processing services, wood chips,
and wood pellets.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/rentech-inc
Rentech Accused of Overstating Operational Capacity
According to the complaint, in a series of press releases and filings with the U.S. Securities and Exchange Commission, Rentech
officials misled investors regarding the expected operational capacity of its wood pellet facilities in Wawa, Ontario and Atikokan,
Ontario, stating that its Wawa facility would reach full capacity by late 2017. The complaint alleges that due to operational
setbacks, the Wawa Facility struggled to achieve its full capacity of 400,000 metric tons in the timeframe purported by Rentech
officials, and Rentech incurred financial penalties for failing to fulfill contractual obligations as a result of these setbacks.
Despite these shortcomings, the complaint states that Rentech officials failed to adequately correct previously made statements
regarding the timeline of expected production.
On February 21, 2017, Rentech announced in a press release that it would suspend operations at its Wawa facility and reduce the
production at its Atikokan facility due to persistent equipment and operational issues. The company further stated that it was
exploring "strategic alternatives," including, a sale of the company, a merger or other business combination, a sale of all or a
material portion of the company's assets, or a recapitalization. In addition, the company warned that if it was unable to achieve a
strategic alternative in a timely manner, "there could be a material adverse effect on the Company's business, results of
operations, and financial condition." On this news, Rentech's stock fell $1.31 per share, or 47.6%, to close at $1.44 per share on
February 21, 2017.
Rentech Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid
Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Arroyo LLP
Leonid Kandinov
(619) 525-3990 or Toll Free (800) 350-6003
LKandinov@robbinsarroyo.com
www.robbinsarroyo.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170407005700/en/