Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 33

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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ctions (“CBP”) a prior disclosure letter to correct information reported at the time of entry under U.S. laws and customs regulations with respect to the origin of certain products that were supplied by a manufacturer in Canada but that we subsequently determined had not been substantially transformed in Canada, resulting in the underpayment of certain duties to CBP.  We identified the entry discrepancies to our U.S. 

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importer of such products and provided the information to CBP.  We originally expensed $9.1 million in 2024 related to this matter.  On May 8, 2025, the CBP completed its review and assessed a total amount equal to approximately $9.0 million for this matter, inclusive of the actual amount of duties and interest owed for these discrepancies.Cybersecurity Incident Putative Class Action.  In connection with the cybersecurity incident initially reported on October 28, 2023, the Company was named as a defendant in a putative class action lawsuit captioned David Kok v. Mueller Water Products, Inc., filed on August 30, 2024 in the U.S. District Court for the Northern District of Georgia, Atlanta Division, Case No. 1:24-cv-03894-SCJ.  On July 7, 2025, the Company entered into a settlement agreement with the Plaintiff, which is subject to Court approval.  Under the terms of the settlement, class members can seek the following:  (1) reimbursement of up to $500 for ordinary losses related to the data incident so long as they provide third party documentation (included within the $500 cap on ordinary losses is reimbursement of up to five hours of lost time at $15 per hour for a total of $75); (2) reimbursement of up to $1,400 for extraordinary losses resulting from actual, unreimbursed monetary loss relating to identity theft, fraud or misuse; and (3) two years of three-bureau credit monitoring.  In the alternative, class members can forego these benefits and instead choose a one-time cash payment of $45.  The credit monitoring, ordinary and extraordinary losses, lost time, and alternative cash payment benefits are all subject to an overall aggregate cap of $285,000.  In addition to benefits to the class, Plaintiff’s counsel will receive a fee award of $170,000 and the settlement class representative, David Kok, will receive a service award of $3,500.Indemnification.  We are a party to