Exide Technologies' (NASDAQ:XIDE) micro cap stock was down on Thursday after citizens groups issued the company a notice of intent to sue over its lead-acid battery recycling plants, the Frisco Enterprise reports.
Frisco Unleaded and Downwinders at Risk, the two groups filing the lawsuit, say Exide's plant has been violating standards established by the Environmental Protection Agency (EPA) and other regulators, though no action has been taken. In the lawsuit, the groups say the EPA, which is also named as a defendant, has not issued any fines or ordered any cleanups of the site.
"There are chronic contamination problems at [the Exide plant] that still pose a hazard to Frisco residents and property," said Colette McCadden, secretary of Frisco Unleaded. "There's also a long history of law-breaking that the company must be held accountable for. It's just unfortunate we have to file suit ourselves to make it happen."
The lawsuit could be a blow to the company's shares, which, according to The Street, were recently upgraded from "sell" to "hold."
As of 3:07 p.m. on Thursday, July 19, the company's stock was down 5.28 percent to $3.23.