Gibson Guitar Settles Suit

Gibson Guitar has agreed to pay $300,000 to settle a Federal complaint about the use of exotic woods protected in the Lacey Act in producing guitars.  Gibson maintains it did nothing illegal or improper, there were no criminal charges filed, and claims they settled in order to avoid the huge financial cost of litigation against the Justice Department. I have posted several times on the Gibson situation, click HERE for a previous post and also search the AW bloge for Gibson for additional background.

The WSJ reports

The case grabbed national attention nearly a year ago after agents from the U.S. Fish & Wildlife Service raided Gibson, seizing raw materials and nearly 100 guitars and shutting down production at the Nashville, Tenn.-based company, whose guitars are used by musicians including B.B. King and AC/DC's Angus Young.

Federal officials said Monday that Gibson acknowledged it "may have violated" laws in Madagascar, a country that has struggled with illegal logging and deforestation, when the company acquired unfinished ebony fingerboards through a supplier in 2008 and 2009. Under the U.S. Lacey Act, originally passed in 1900 to regulate trade in bird feathers used for hats, it is illegal to import plant or animal products in violation of foreign laws.

"Gibson has acknowledged that it failed to act on information that the Madagascar ebony it was purchasing may have violated laws intended to limit overharvesting and conserve valuable species," said Assistant Attorney General Ignacia Moreno, with the Justice Department's Environment and Natural Resources Division.

Gibson also agreed to pay an additional $50,000 to the National Fish and Wildlife Foundation to be used to promote conservation of tree species used in the musical-instrument industry, implement a compliance program and withdraw its claims to Madagascar ebony seized by investigators and valued at $261,844.

Gibson Chief Executive Henry Juszkiewicz said he felt Gibson was targeted inappropriately. He added that the company settled the dispute to avoid the cost of litigation, and said he was "gratified" that no criminal charges were brought.

Source: The Wall Street Journal