Law Offices of Todd M. Garber Announces Class Action Lawsuit Against Exide
LOS ANGELES -- April 19, 2013
The Law Offices of Todd M. Garber announces that a class action lawsuit has
been filed in the United States District Court for the Central District of
California on behalf of a class (the “Class”) comprising all purchasers of the
securities of Exide Technologies (“Exide” or the “Company”) (NASDAQ:XIDE)
between February 9, 2012 and April 3, 2013, inclusive (the “Class Period”).
Exide operates in 80 countries producing, recycling and distributing lead-acid
batteries. The Company operates eight battery recycling facilities worldwide,
and its global transportation and industrial energy groups provide a range of
stored electrical energy products and services for industrial and
The Complaint alleges that during the Class Period defendants knew but
misrepresented or failed to disclose to the investing public that: (a) Exide
was polluting the environment with potentially fatal levels of arsenic, and
exposing almost 110,000 residents near its Vernon, California, battery
recycling facility to dangerously high levels of pollutants; (b) Exide knew,
based on actual and projected revenues and expenses, that the Company would
not be able to meet its debt repayment obligations and other pledges and
promises under a $200 million revolving facility, a $675 million bond, and a
$55.7 million floating rate convertible note due in September 2013; and (c) as
a result, Exide knew its environmental liabilities, debt obligations and
potential insolvency supported neither Exide’s statements to investors that
the Company was solvent, its quarterly guidance, nor the inflated share price
targets the investment community was modeling based on defendants’ Class
Period statements and guidance.
On March 22, 2013, the Company’s recycling facility in Vernon was cited by the
South Coast Air Quality Management District (AQMD) as posing a greater cancer
risk to residents of Southern California than any of the more than 450
facilities the agency has regulated in the last 25 years.
Then, on April 3, 2013, Los Angeles City Council members held a public hearing
asking the government to press charges against the Company to correct the
health risk posed by the Company’s environmental contamination, and on April
4, 2013 Debtwire.com published a report that Exide had hired financial
advisory firm Lazard and the law firm of Akin Gump LLP to advise on the
Company’s financial restructuring after prior restructuring efforts stalled.
On this news, Exide’s shares fell $1.24 a share to $1.37 a share, a 46% drop
on April 4, 2013, before trading in the stock was halted.
If you are a member of the above-described Class, you may move the Court no
later than June 14, 2013 to serve as lead plaintiff; however, you must meet
certain legal requirements. To be a member of the Class you need not take any
action at this time, or you may retain counsel of your choice. If you have
information or would like to learn more about these claims, or if you have any
questions concerning this announcement or your rights or interests with
respect to these matters, please contact Todd M. Garber, Esquire, of the Law
Offices of Todd M. Garber, by telephone at 213-700-7262 or by email to
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Law Offices of Todd M. Garber
Todd M. Garber, Attorney at Law
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