Hastings Manufacturing Co. Responds to Lawsuit
27 January 2000
Hastings Manufacturing Co. Responds to LawsuitHASTINGS, Mich., Jan. 27 -- Hastings Manufacturing Company (Amex: HMF) announced that a complaint has been filed against the Company in the U.S. District Court for the Western District of Michigan. The complaint, which is seeking class-action status, alleges that the Company breached its collective bargaining agreements with retirees by improperly modifying their healthcare benefits. An attorney has filed a complaint on behalf of three retired union workers: Margaret Greenfield, Evelyn Curtis Hecht and William Pickard. "As previously disclosed in our filings with the Securities and Exchange Commission, we have been in talks with these retirees and their counsel to resolve this issue for more than two years," said Andrew Johnson, co-CEO of Hastings. "Unfortunately, we have been rebuffed in our attempts to reach a resolution that is equitable to retirees, yet balances our current situation as a Company. "We are deeply disappointed that this situation could not have been resolved without turning to the courts. We intend to vigorously defend Hastings Manufacturing and do what's right for our 451 current employees, our shareholders, customers, suppliers -- and our retirees." Hastings Manufacturing expects the litigation will have no immediate impact on the day-to-day operations of the Company as more fully described in the Company's filings with the Securities and Exchange Commission. If the plaintiffs' position prevails, it is anticipated that this proposal, if implemented, would have a material adverse effect on both future results of operations of the Company and its future cash flow. Hastings Manufacturing (http://www.hastingsmfg.com ) is a leading manufacturer and marketer of piston rings and specialty tools under the Hastings(R) brand, and additives for engines, transmissions, cooling systems and fuel systems under the Casite(R) brand. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices.