NEW YORK, May 10, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Exide Technologies ("Exide Technologies" or the "Company") (Nasdaq:XIDE) and certain of its officers. The class action filed in United States District Court, Central District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Exide Technologies between February 9, 2012 and April 3, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Exide Technologies securities during the Class Period, you have until June 14, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Exide operates in 80 countries, producing, recycling and distributing lead-acid batteries. The Company's global transportation and industrial energy groups purported to provide a range of stored electrical energy products and services for industrial and transportation applications.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, defendants failed to disclose 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 that based on actual and projected revenues and expenses it would not be able to meet its debt repayment obligations and other pledges and promises under its debt agreements and indentures. Specifically, the Company knew that it could not satisfy its obligations 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 regarding the Company's financials, 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, one of the Company's recycling facilities in Vernon, California, located approximately four miles due south of downtown Los Angeles, was cited by the South Coast Air Quality Management District (the "Agency") 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.
Following the Agency's citation, 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.
On April 4, 2013, news source Debtwire.com published a report that Exide had hired financial advisory firm Lazard and the law firm of Akin Gump LLP, both bankruptcy experts, to advise on its financial restructuring after prior restructuring efforts stalled. On this news, Exide's shares fell $1.24 a share to $1.37 a share (-46%), on April 4, 2013, before trading in the stock was halted.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP firstname.lastname@example.org