First Brands Group has issued a statement following the indictment of two former executives by the United States Department of Justice. Former CEO Patrick James and former Senior Vice President Edward James face criminal charges, while former Vice President of Finance Peter Andrew Brumbergs has entered a guilty plea.
Highlights
- DOJ indicts former First Brands CEO Patrick James and former SVP Edward James on criminal charges
- Former VP of Finance Peter Andrew Brumbergs pleads guilty
- Special Committee of Board of Managers conducting independent review of historical business practices
- Company pursuing legal claims against former executives while continuing sale process
Company Statement on Charges
First Brands stated that the criminal charges relate to alleged historical actions by individuals no longer involved in company management, governance, or day-to-day operations.
“This is a tragic situation that has disrupted the lives of employees, families, and communities who depend on this business,” the company said. “We recognize the very real human toll of these events and the uncertainty many are facing.”
Ongoing Review and Legal Action
The Special Committee of the Board of Managers continues conducting an independent review of historical business practices. First Brands intends to pursue all available claims and causes of action against Patrick James, Edward James, and others to maximize value for the estate.
The company confirmed it is fully cooperating with law enforcement and remains focused on advancing its ongoing sale process.
About First Brands Group
First Brands Group is a global automotive parts company with a portfolio of brands including Raybestos complete brake solutions, Centric Parts replacement brake components, StopTech performance brakes, Carlson brake hardware, FRAM filtration products, TRICO wiper blades, Autolite spark plugs, and CARDONE new and remanufactured replacement parts.
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