Advertisement

Exide Technologies Violations Admission Announced

Advertisement

According to documents filed with the SEC, to meet the terms of its previously-announced non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Central District of California (USAO), Exide Technologies will be required to admit its role in commiting certain felony violations and accept related responsibility for that conduct. As part of the agreement with the California Department of Toxic Substances Control, the Company also agreed to immediately take steps to permanently close its Vernon, CA secondary lead recycling facility. Exide Technologies’ admission and this closure are mandatory prerequisites to the NPA becoming effective.

The SEC filing explains, “If the NPA becomes effective, the Company will be required to, among other things, (1) admit that it committed certain identified acts constituting felony violations as set forth in the NPA and accept and acknowledge responsibility for such criminal conduct….The NPA will also require the Company to (i) accelerate a $3,000,000 payment required to be made under the 2014 Vernon Stipulation and Order to the Residential Off-Site Corrective Action Trust Fund described therein within 30 days after the effective date of Exide’s plan of reorganization, (ii) fund periodic blood lead and arsenic level monitoring for certain local residents for five years from the date of the NPA and (iii) enter into a tolling agreement pursuant to which the Company will toll all applicable statute of limitations for alleged criminal violations of various federal laws occurring within the Central District of California during the time period that the NPA is in effect.”

Read more about XIDE’s most recent bankruptcy case.