-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CweqSHZErEJo7bM0g7GgoXZnbi9NBt+HPyiVwNREGQUlWVCSA+0460ryrG/yTQn1 0IWl9prkoO7O4MHaujbgSA== 0000950116-98-000559.txt : 19980309 0000950116-98-000559.hdr.sgml : 19980309 ACCESSION NUMBER: 0000950116-98-000559 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980304 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980306 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL SPRINKLER CORP CENTRAL INDEX KEY: 0000766041 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FABRICATED METAL PRODUCTS [3490] IRS NUMBER: 232328106 STATE OF INCORPORATION: PA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-13940 FILM NUMBER: 98559306 BUSINESS ADDRESS: STREET 1: 451 N CANNON AVE CITY: LANSDALE STATE: PA ZIP: 19446 BUSINESS PHONE: 2153620700 MAIL ADDRESS: STREET 1: 451 N CANNON AVE CITY: LANDSDALE STATE: PA ZIP: 19446 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): March 4, 1998 ------------- CENTRAL SPRINKLER CORPORATION ----------------------------------------------- (Exact Name of Registrant Specified in Charter) Pennsylvania 0-13940 23-2328106 --------------- ---------------- ------------------- (State or Other (Commission File (I.R.S. Employer Jurisdiction of Number) Identification No.) Incorporation) 451 North Cannon Avenue Lansdale, Pennsylvania 19446 - ---------------------------------------------- ----------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (215) 362-0700 -------------- ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 5. Other Events. As previously disclosed by the Registrant in its Annual Report on Form 10-K for the fiscal year ended October 31, 1997 (the "Form 10-K"), the U.S. Consumer Product Safety Commission (the "Commission") has been investigating problems regarding the Registrant's Omega sprinkler heads. The Registrant disclosed in the Form 10-K that the staff of the Commission had advised the Registrant that the staff would be recommending to the Commission that it take administrative action against the Registrant. On March 4, 1998, the Commission issued a press release advising the public that the staff of the Commission had filed, on March 4, 1998, an administrative complaint against the Registrant and one of its subsidiaries. On March 4, 1998, the Registrant issued a press release in response to the Commission's action. The Registrant hereby incorporates by reference the Commission's press release attached hereto as Exhibit 99.1 and the Registrant's press release attached hereto as Exhibit 99.2, each made a part hereof, into this Item 5. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits Exhibit Number Description -------------- ----------- 99.1 Press Release issued by U.S. Consumer Product Safety Commission, dated March 4, 1998. 99.2 Press Release issued by Registrant, dated March 4, 1998. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTRAL SPRINKLER CORPORATION (Registrant) By /s/ Albert T. Sabol -------------------------------------- Albert T. Sabol Executive Vice President, Finance and Chief Financial Officer Dated: March 6, 1998 EX-99.B1 2 EXHIBIT 99.1 NEWS from CPSC U.S. Consumer Product Safety Commission Office of Information and Public Affairs Washington, DC 20207 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE CONTACT: Russ Rader March 4, 1998 (301) 504-0580 Ext. 1166 Release # 98-075 CPSC Sues Central Sprinkler Over Defective Fire Sprinklers WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) announced today that its staff has filed an administrative Complaint against Central Sprinkler Corp., and its subsidiary Central Sprinkler Co., of Lansdale, Pa., alleging that Central's "Omega" series fire sprinklers present a substantial product hazard. The Complaint seeks a nationwide recall of the approximately 10 million Omega fire sprinklers that Central has manufactured since 1982. In its Complaint, the CPSC staff alleges that these sprinklers are defective and are likely to fail in a fire situation. The sprinklers may not properly activate in the event of a fire, thus exposing the public to bodily injury or death. CPSC is aware of six fires in which Omega fire sprinklers reportedly failed to operate. In one of these instances, the fire caused more than $3 million in property damage. The Commission staff filed the Complaint after discussions with the company and its representatives failed to result in a voluntary recall and replacement plan acceptable to CPSC. This type of legal action against a company is rare. This is only the second time in 10 years that the CPSC staff has filed such a suit. In seeking a recall of the Omega sprinklers, the Complaint calls for extensive public notice of the hazard and remedy. Only Central's Omega series fire sprinklers are involved, including, but not limited to, models referred to or marked as follows: C1 (or C-1), C1A (or C-1A), C-1A PRO (or C1-A PRO), C1-A PRO QR, C-1A PRO ID, EC-20, EC-20A, EC-20 AID, R-1, R-1A, R-1M, Flow Control (FC; Flow Control-FC), M, Protector-M or M Protector (Upright, Pendent, Sidewall, Sidewall EC), HEC-12, HEC-12 RES, HEC-12 EC, HEC-12 EC PRO, HEC-12 ID, HEC-12 PRO, HEC-12 PRO QR, HEC-20, HEC-20 ID, Prohibitor QR and AC. They are installed in homes, schools, hospitals, dormitories, nursing homes, offices and other buildings. From a distance, consumers may be able to make a preliminary determination of whether their homes or other buildings are equipped with Omega fire sprinklers. On most models, consumers will be able to see one to three flat round metal disks stacked above one another with a small space between each disk. Because it is difficult to conclusively determine whether Omegas are installed, CPSC strongly encourages consumers to contact their architect, builder, sprinkler contractor, plumber, homeowners' association or property manager. Consumers should not attempt to unscrew the sprinkler or shut down their sprinkler system to determine if they have Omegas. While the Commission staff pursues an acceptable recall and replacement plan, consumers with Omega fire sprinklers should be sure to have at least one fully operational smoke detector on every floor of their home, especially near bedrooms. The Commission staff also recommends that consumers have a well-defined and rehearsed escape plan and an alternate escape plan in the event of a fire. As always, consumers should diligently practice fire safety to reduce the possibility that a fire will occur. Consumers can obtain fire safety information by calling CPSC's toll-free hotline at (800) 638-2772 or by visiting CPSC's web site at www.cpsc.gov. The Commission staff urges anyone who is aware of any instances in which an Omega sprinkler has failed to activate when tested or in a fire, or who have questions about this announcement, to call CPSC's toll-free hotline at (800) 638-2772. [GRAPHIC OMITTED] The U.S. Consumer Product Safety Commission protects the public from the unreasonable risk of injury or death from 15,000 types of consumer products under the agency's jurisdiction. To report a dangerous product or a product-related injury and for information on CPSC's fax-on-demand service, call CPSC's hotline at (800) 638-2772 or CPSC's teletypewriter at (800) 638-8270. To order a press release through fax-on-demand, call (301) 504-0051 from the handset of your fax machine and enter the release number. Consumers can obtain this release and recall information via Internet gopher services at cpsc.gov or report product hazards to info@cpsc.gov. EX-99.B2 3 EXHIBIT 99.2 For Immediate Release Contact: Bess Bezirgan or Jamic Tolson March 4, 1998 1-800-523-6512 ext. 193 STATEMENT BY CENTRAL SPRINKLER IN RESPONSE TO U.S. CONSUMER PRODUCT SAFETY COMMISSION Central Sprinkler strongly disagrees with the CPSC's conclusions about the performance of the Omega sprinkler. The Omega works. It has been successfully controlling fires for 15 years. We intend to defend our product and our ongoing remediation program. The Commission's conclusion is based on a methodology that does not apply to installed sprinkler systems. According to National Fire Protection Association and Underwriters Laboratories protocols for installed sprinkler systems, evaluation of an installed sprinkler system is based on site-specific conditions including: * available water pressure; * the number and type of sprinkler heads; * the area covered; and * the building layout and structure. We have sold more than eight million Omega sprinkler heads during the past 15 years. In the five incidents in which an individual head may not have operated, other heads in the system have activated to successully assist in controlling the spread of fire. Moreover, we strongly believe that the remediation program voluntarily initiated by our company nearly two years ago addresses the Commission's concerns. Since learning of concerns about activation in early 1996, we have spent more than $5 million to examine more than 1,800 buildings and provide remedies as appropriate. We've set up an 800 number for those who want our help. We've notified contractors and other purchasers by mail. We are addressing this issus every day and we are vigorously moving ahead with this program. We are especially disappointed that our technical team has not been given the opportunity to meet with the Commission's technical experts to discuss CPSC data, its specific concerns, and its conclusions. Despite our repeated requests, the Commission staff has not agreed to set up a meeting on these matters. Editors' Note: Individuals with concerns or questions about Omega sprinklers should call 1-800-638-1531. Central Sprinkler Company 451 North Cannon Avenue, Lansdale, Pennsylvania, 19446 (215) 362-0700 (800) 523-6512 FAX: (215) 362-5385 -----END PRIVACY-ENHANCED MESSAGE-----