FIVE REASONS TO ASK QUESTIONS
BEFORE CONTRACTING WITH SYNAGRO TECHNOLOGIES
Synagro Technologies Inc., the largest recycler of organic residuals in the United States, has a troubling business record that includes:
- BREACH OF CONTRACT:
Synagro is currently facing charges in the New York Southern District Court for allegedly defaulting under contractual agreements which have caused the Rockland County Solid Waste Management Authority to become unable to process sludge and to suffer financial damages. - FAILURE TO COMPLY:
Synagro is facing a proposed $27,000 penalty and a corrective order from the Maryland Department of the Environment (MDE) for violating air quality regulations. After receiving numerous citizen complaints about sewage odors, an MDE investigation determined that Synagro failed to comply with permit conditions on the plant’s air pollution control equipment. - COMMUNITY HEALTH CONCERNS:
A New Hampshire man died of a staphylococcus aureus infection just one month after passing through land covered in sludge applied by Synagro Technologies Inc. In January 2002, his family reached an out-of-court settlement with Synagro for an undisclosed sum of money and agreed to drop the suit and sign a gag order. - LITIGATION:
Several individuals in Sussex County, Va., filed suit against a Synagro subsidiary in 2006 alleging the onset of serious health problems such as burning eyes, lung scarring, and pneumonia after applications of Synagro products on a neighboring property. The case has yet to be resolved. - RECENT BUYOUT BY THE CARLYLE GROUP:
In April 2007, the Carlyle Group, a Washington, D.C.-based buyout firm, purchased Synagro for $772 million. As a result of the buyout, Synagro is no longer required to provide certain business information to the public, shareholders, and federal agencies such as the SEC. The added secrecy makes it more difficult to obtain information on legal complaints and health hazards associated with Synagro. Since the buyout was structured with a high level of debt, the company may need to find ways to slash operating costs, including potentially affecting quality of services.