Agreement Marks Final Step in Process of Cooperating with the
Company Affirms Commitment to Go-Forward Strategy
DES PLAINES, Ill.--(BUSINESS WIRE)--Aug. 11, 2008--Lawson
Products, Inc. (NASDAQ:LAWS) today announced that it has entered into
a Deferred Prosecution Agreement with the United States Attorney's
Office for the Northern District of Illinois, bringing to a close -
subject to the terms of the agreement - the government's investigation
of the Company and its former customer loyalty programs.
In entering into the agreement, Lawson accepted responsibility for
its actions and agreed to pay a $30 million monetary penalty, which
will be paid in three equal installments of $10 million over the next
24 months. The mail fraud charge deferred by the agreement will be
dismissed permanently if Lawson Products satisfies all of the terms of
the agreement during the next three years.
"We are pleased to have reached this agreement with the U.S.
Attorney's Office, which enables us all to move forward with our
business plan," said Neil E. Jenkins, Executive Vice President and
General Counsel. "Throughout this process, we have been committed to
working with the government to uncover the truth, and we have promised
our continued cooperation. We are confident we have taken the
necessary actions and implemented the proper processes, oversight and
programs so that such events are not repeated and we can continue to
run our business with integrity."
"Today's settlement marks a new beginning for Lawson," said Thomas
J. Neri, President and Chief Executive Officer. "The company is
financially sound - we have a strong balance sheet, a solid underlying
business, and we are confident our go-forward strategy positions us
well in the market. Throughout this process we have worked diligently
to institute measures to ensure all Lawson employees and sales agents
operate in accordance with the highest ethical standards; as we move
forward, we renew our commitment to building our business, serving our
customers and improving our operations. We have some exciting
opportunities on the horizon, and I believe that we are in a strong
position to capitalize on them."
About Lawson Products, Inc.:
Lawson Products, headquartered in Des Plaines, Ill., is a leader
in selling and distributing services, systems, and products to the
industrial, commercial, and institutional maintenance, repair and
operations (MRO) market. The company also manufacturers, sells, and
distributes production and specialized component parts, and provides
services and systems to original equipment manufacturers (OEMs).
CAUTIONARY STATEMENT: This release contains certain
forward-looking statements that involve risks and uncertainties. The
terms "may," "should," "could," "anticipate," "believe," "continues,"
"estimate," "expect," "intend," "objective," "plan," "potential,"
"project" and similar expressions are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions
that are difficult to predict. Such statements speak only as of the
date of the news release and are subject to a variety of risks and
uncertainties, many of which are beyond the Company's control, which
could cause actual results to differ materially from the expectations.
These risks include, but are not limited to the impact of governmental
investigations, such as the ongoing investigation by U.S. Attorney's
Office for the Northern District of Illinois; excess and obsolete
inventory; disruptions of the Company's information systems; risks of
rescheduled or cancelled orders; increases in commodity prices; the
influence of controlling stockholders; competition and competitive
pricing pressures; the effect of general economic conditions and
market conditions in the markets and industries the Company serves;
the risks of war, terrorism, and similar hostilities; and, all of the
factors discussed in the Company's "Risk Factors" set forth in its
Annual Report on Form 10-K for the year ended December 31, 2007. The
Company undertakes no obligation to update any such factors or to
publicly announce the results of any revisions to any forward-looking
statements contained herein whether as a result of new information,
future events or otherwise.
CONTACT: Lawson Products, Inc.
SOURCE: Lawson Products, Inc.