CHICAGO, March 14, 2005 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Southern District of New York on behalf of purchasers of Delphi Corporation (NYSE:DPH) ("Delphi") common stock during the period between April 12, 2000 and March 3, 2005 (the "Class Period").
The complaint alleges that Delphi and certain of its officers and directors violated the federal securities laws by issuing a series of materially false and misleading statements to the market during the Class Period. These misstatements had the effect of artificially inflating the price of Delphi publicly traded securities.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Conor R. Crowley at Much Shelist by calling the toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Delphi.
It has been further alleged that during the Class Period, defendants issued materially false and misleading financial statements as a result of Delphi's improper accounting for off-balance sheet financing and vendor rebates. Its earnings were also misleading due to sham transactions and other practices and transactions which Delphi is still investigating. As a result of these false statements, the Company's stock climbed to as high as $17.40 per share during the Class Period. Delphi took advantage of this artificial inflation, selling $400 million in preferred securities and $500 million in 6.5% unsecured notes.
On March 4, 2005, Delphi issued a press release announcing the resignation of Alan Dawes, the Company's CFO, and detailing serious and widespread accounting failures at Delphi that resulted in the reporting of materially false financial statements throughout the Class Period. Delphi and certain officers engaged in an accounting fraud so pervasive that the Company's Audit Committee warned investors that they cannot rely on any of Delphi's financial statements for the last four years and that financial statements will have to be restated. Based on the Company's preliminary findings, Delphi executives used roundtrip transactions or sham sales of assets, improper deferral of expenses and other improper accounting maneuvers to inflate reported pretax earnings by a total of $166 million for the years 1999 to 2001 and to increase cash flow from operations by a total of $446.5 million for 1999 through 2003.
Upon these disclosures, Delphi's stock dropped to as low as $5.41 per share before closing at $5.46 per share on March 4, 2005, some 68% below the Class Period high of $17.40 per share and a one-day drop of 14%, on volume of 24 million shares.
If you purchased Delphi securities during April 12, 2000 and March 3, 2005 and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than May 6, 2005.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist represents individual and institutional investors in class action, complex securities and corporate governance litigation. Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States, successfully prosecuting cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca.