SOURCE: Stull, Stull, & Brody

June 21, 2005 17:32 ET

Stull, Stull & Brody Announces Class Action Against Exide Technologies

NEW YORK, NY -- (MARKET WIRE) -- June 21, 2005 -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of New Jersey, on behalf of all persons who purchased the publicly traded securities of Exide Technologies ("Exide") (NASDAQ: XIDE) 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 Exide securities between November 16, 2004 and May 17, 2005, you may, no later than August 15, 2005, request the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at

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