If you have purchased shares of Exide Technologies (NASDAQ:XIDE) between February 9, 2012 and April 3, 2013, call 1-800-934-2921 right now to protect your rights.
Filing deadline: 06/14/2013
In the complaint, the plaintiff states that the officers and directors of Exide Technologies violated the Securities Exchange Act of 1934. The plaintiff alleges that the company put all entities and persons who purchased or acquired shares and securities of Exide Technologies between the dates of February 9, 2012 and April 3, 2013 at risk due to failure to disclose adverse facts regarding the operations, prospects and business of the company, along with other misleading and false statements on behalf of Exide Technologies (Nasdaq:XIDE).
In the complaint, the plaintiff states that the defendants, Exide Technologies, failed to disclose to shareholders that the company was causing fatal levels of arsenic pollution within the environment. It is alleged that the company has exposed nearly 110,000 Vernon, California residents, those in range of the company’s battery recycling facility, to levels of pollutants that are dangerously heightened. It is also alleged that Exide Technologies was aware that it would not be able to repay debt and other financial obligations, including pledges and promises, due to actual and projected company expenses and revenues.
The plaintiff states that Exide Technologies was aware that the financial obligations under a $200-million revolving facility, a $55.7-million floating rate convertible note and a $675-million bond could not be satisfied. The plaintiff also states that the company is and was aware of their liabilities related to the environment, potential insolvency, and debt obligations, but did nothing to notify its investors via statement or any other means. The company did not release this information in its quarterly guidance. They also failed to release inflated share price targets in statements or guidance between February 9, 2012 and April 3, 2013.
As of March 22, 2013, The South Coast Air Quality Management District made public an assessment related to health risks at Exide Technologies. It was found that residents living down-wind from the Vernon battery recycling facility had been exposed to presumably cancerous arsenic levels. Workers at the plant were also considered to be highly at risk. The business closed on April 3, 2013 and the L.A. City Council sent instructions to the L.A City Attorney’s office, pushing for the exploration of legal action against Exide Technologies, and immediate addressing of the concerns of the City Council.
Exide Technologies announced on April 4, 2013 that Lazard advisory firm had been retained to advise the company on how to increase the value of the company for shareholders, and to advise regarding financing alternatives. Shares in the company dropped from $2.53 to $1.21 on April 4, 2013. As of April 15, 2013, shares for Nasdaq:XIDE closed at $1.43 per share.
Own shares of Exide Technologies (NASDAQ:XIDE)? Contact us to protect your rights.
If you have purchased shares of Exide Technologies (NASDAQ:XIDE) between February 9, 2012 and April 3, 2013, call 1-800-934-2921 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights.