Sears Settles DieHard Batteries Case
Sears, Roebuck & Co. agreed to pay the government $62.6million to settle allegations it advertised and sold DieHard auto batteries in 1994 and 1995 as the nation’s “longest-lasting” even after it learned some had defects.
The settlement, announced by the Hoffman Estates, Ill.-based retailer and the U.S. attorney for southern Illinois, ends a more-than-two-year investigation into the batteries made by Sears supplier Exide Technologies.
Sears said it will take a one-time charge in the fourth quarter of 12 cents a share to reflect the settlement.
“Faced with the continuing expense and distraction of protracted litigation, we have decided that settling it now is in the best interests of all of our constituents,” Chief Executive Alan Lacy said.
In a statement, Sears confirmed that Exide informed it in October 1994 that a small percentage of DieHard batteries were defective but assured the retailer it had fixed the problem and showed it test data indicating that the batteries met specifications. Sears said it learned later that the data were false.
An Illinois unit of Exide agreed earlier this year to pay $27.5 million over five years in the case.
Sears shares fell 27 cents to $48 on the NYSE.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
