SOUTH BURLINGTON, Vt., April 12, 2005 (PRIMEZONE) -- Johnson & Perkinson (http://www.jpclasslaw.com) announces the filing today of a class action lawsuit, in the United States District Court for the Eastern District of Michigan, on behalf of participants and beneficiaries of the Delphi Corporation's (NYSE:DPH) pension plans. The lawsuit, brought pursuant to the Employee Retirement Income Security Act of 1974, is on behalf of those participants since May 28, 1999 in the (1) Delphi Savings-Stock Purchase Program for Salaried Employees in the U.S.; (2) Delphi Personal Savings Plan for Hourly-Rate Employees in the U.S.; (3) ASEC Manufacturing Savings Plan; and (4) Delphi Mechatronic Systems Savings-Stock Purchase Program. If you wish to discuss your rights, please call 866-276-5446 (EST) or e-mail Johnson & Perkinson at: email@jpclasslaw.com.
The lawsuit alleges that plan fiduciaries breached such duties and responsibilities by, among other things, failing to investigate the prudence of an investment in Delphi stock and by making misrepresentations about the Company's accounting practices dating back to1999. Several current and former Delphi employees have already chosen to participate in the lawsuit. These employees are organizing a structure to direct the lawsuit. Those employees who choose to participate in the lawsuit can do so confidentially. It is unlawful for any fiduciary or defendant to take any retaliatory action against any employee who chooses to participate in the suit.
The complaint charges fiduciaries of the plans with violations of the Employee Retirement Income Security Act of 1974. Delphi is a global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers. The complaint alleges that during the Class Period, defendants knew or should have known that Delphi issued materially false and misleading financial statements caused by Delphi's improper accounting for off-balance sheet financing and vendor rebates. Its earnings were also misleading in part due to 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. Upon the disclosures of the need to revise its financial statements, 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.
The plaintiff will be represented by J&P, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. J&P is a litigation boutique dedicated to maximizing shareholders' returns that devotes a good part of its practice to representing current and former employees who have lost a significant portion of their retirement savings in their companies' 401(k) and/or employee stock ownership plans. Members of the firm have prosecuted complex class actions on behalf of plaintiffs in the areas of ERISA, securities and consumer fraud since 1985. Based in South Burlington, Vermont, the firm has prosecuted leading actions on behalf of defrauded investors against numerous public companies resulting in the recovery of many millions of dollars and has been singled out for its excellence by various courts. For more information about the lawsuit or if you have any information relevant to the allegations of the Complaint, please e-mail at email@jpclasslaw.com, or call toll free as listed above.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.