5/27/2005Ohio Vote Hits Red Light Camera CEO for $223,000
Bill restricting the use of cameras in Ohio costs Australian CEO of Redflex $223,000 in stock value.
Australian contractor Redflex is used to billing motorists with its red light camera tickets, but the Ohio House essentially levied a $223,000 fine of its own on the company's CEO by sending its stock to a 7-month low. On Monday, analysts downgraded Redflex following passage of legislation that would, in effect, end the use of red light cameras in the state. Shares of Redflex on the Australian Stock Exchange have plunged 39 cents to $3.01 since Monday.
Redflex is one of the main camera contractors in Ohio and the state represents 10 percent of its business. Christopher Cooper, CEO of Redflex Holdings, who on Monday held 749,996 shares of the stock, has now lost $292,498 (US $223,288) in stock value.