Press and News
For Immediate Release – Krones Announces Settlements of Le-Nature's Legal Proceedings
The U.S. company of the Krones Group, Krones Inc. in Franklin, Wisconsin, and Krones AG, a leading manufacturer of filling and packaging technology based in Neutraubling, Germany, have entered into settlements with various parties to end all significant legal disputes related to the bankruptcy of Le-Nature's Inc. in 2006.
Krones has entered into the settlements to eliminate the continued uncertainty and risk associated with the U.S. legal proceedings and to allow the company to limit the time, distractions, and expense created by those proceedings. The settlements include payments of approximately $110 million to various private parties and the trustee representing creditors in Le-Nature’s bankruptcy proceedings, as well as a payment by Krones Inc. of $15 million to the U.S. government. Krones denies having knowingly participated in Le-Nature’s fraudulent activities in any way, and admits no fault or misconduct in its dealings with Le-Nature’s. In the course of doing business, Krones was manipulated by Le-Nature’s and subjected to fraudulent and unethical activities.
The settlements provide that the U.S. Attorney for the Western District of Pennsylvania, which had jurisdiction over the Le-Nature’s matter, and other private parties will not pursue claims against Krones and represent a good faith effort by the company to resolve the legal matters arising from Le-Nature’s bankruptcy and the fraud committed by Le-Nature’s former CEO and senior officers.
Krones has cooperated fully with the U.S. Attorney’s office in its investigation of Le-Nature’s and Le-Nature’s management. Since 2006, Krones Inc. has strengthened its management team, improved company oversight and instituted enhanced internal controls.
Krones remains committed to delivering quality customized engineering, operations and service. We are strongly focused on meeting the needs of our customers, returning value to shareholders and honoring the employees who define our brand and the communities where we do business.
The settlements represent the closing chapter in long-running legal proceedings and we believe Krones is well positioned to capitalize on the opportunities before us.
Phone: (414) 409-4585
About Krones Inc.
Krones Inc. is the United States subsidiary of Krones AG, Neutraubling, Germany, a world leader in the manufacture of fully integrated packaging and bottling line systems as well as integrated brew house and processing systems, IT solutions and warehouse logistics systems. The company has facilities strategically located around the globe. Krones’ United States headquarters is in Franklin, Wis., a suburb of Milwaukee.