Exide Settles Investor Class Action For $13M

Exide Settles Investor Class Action For $13M - 3/30/2009

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2009 News and Press Releases

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

Exide Settles Investor Class Action For $13M
Samuel Howard

Law 360. March 30, 2009
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EXCERPT: Automotive battery producer Exide Technologies has agreed to pay $13.7 million to settle a consolidated class action alleging the company deceived investors with sanguine reports shortly after emerging from bankruptcy in 2004. The settlement, submitted Friday for approval by Judge Mary L. Cooper of the U.S. District Court for the District of New Jersey, creates a $13.7 million settlement fund to resolve accusations the battery maker misled investors about its ability to meet covenants associated with loans the company took on after reorganization. After Exide emerged from bankruptcy in May 2004, the company made false statements about its performance, inflating its inventory and income and overstating its ability to meet the covenants of a $600 million loan Exide received, the complaint said. … The case is Aviva Partners LLC v. Exide Technologies et al., case number 3:05-cv-03098, in the U.S. District Court for the District of New Jersey.

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