BigClassActions.com
Advertisement

Exide Technologies NASD: XIDE



Company: Exide Technologies
Ticker Symbol: NASD: XIDE
Class Period: November 16, 2004 to May 17, 2005
Date Filed: Jun-16-05
Lead Plaintiff Deadline: Aug-15-05
Court: District, NJ
Allegations:
A lawsuit seeking class action status has been filed in the United States District Court for the District of New Jersey on behalf of all persons who purchased the securities of Exide Technologies (Nasdaq: XIDE - News; "Exide") between November 16, 2004 and May 17, 2005, inclusive (the "Class Period").

The Complaint alleges that Exide violated federal securities laws. Under a $365 million senior secured credit facility, Exide was required to maintain a specified ratio of debt to equity ("Leverage Ratio Covenant"), and to maintain minimum consolidated earnings before income, taxes, depreciation, amortization ("EBITDA") ("EBITDA Covenant") (collectively, the "Covenants"). Defendants represented that Exide could maintain compliance with the Covenants, however, on February 14, 2005, defendants revealed that Exide was in violation of the Leverage Ratio Covenant. Defendants assured investors, that Exide's lenders would waive the Leverage Ratio Covenant and emphasized that Exide was in compliance with the EBITDA Covenant, and was not at risk of default.

On May 17, 2005 defendants announced that: (i) Exide failed to satisfy the minimum EBITDA Covenant; (ii) several "unanticipated and unusual items," had resulted in a reduction of earnings (iii) Exide was unable to properly forecast its inventory requirements; and (iv) because Exide had violated a contract, it was required to record an adjustment of $1.5 to $2 million.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.


If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.

Maybe it's your stockbroker

Add Your Comment on This Issue

Please read our comment guidelines before posting.


Note: Your name will be published with your comment.


Your email will only be used if a response is needed.

Request Legal Help