DALLAS, March 8, 2005 (PRIMEZONE) -- The law firm of Baron & Budd, P.C. announces that a class action lawsuit was filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of Molex Incorporated (Nasdaq:MOLXE) ("Molex" or the "Company") securities during the period between July 27, 2004 and February 14, 2005, inclusive (the "Class Period").
The Complaint alleges that Molex violated federal securities laws by issuing false or misleading information and that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them. Specifically, the Complaint alleges: (a) that the Company hid $5.8 million in inventory expenses in an effort to inflate its earnings; (b) that the Company had to take a $9.1 million inventory charge as a result of the foregoing; (c) that the Company improperly accounted for its accrual for vacation pay, its recording of a contingent gain, and its recording of the first quarter profit-in-inventory charge which resulted in the Company's financial results to be in violation of Generally Accepted Accounting Principles ("GAAP").
On November 11, 2004, the Company announced that it was delaying the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 and that Diane S. Bullock had been replaced as Chief Financial Officer. On November 15, 2004, Molex announced that Deloitte & Touche LLP had resigned as the Company's independent auditor. On February 14, 2005, Molex released its quarterly financial and operational results and the restated results for the Company's quarter ended September 30, 2004, which more fully disclosed the extent of its accounting irregularities.
The Company's shares reacted negatively to this news and fell to $25.45, down 11.6% from a previous closing price at $28.79.
If you acquired the securities of Molex Incorporated during the Class Period and meet certain legal requirements, you may, no later than May 2, 2005, move for appointment as lead plaintiff on behalf of the proposed class.
If you are a member of this class and would like to take action in this suit, please visit Baron & Budd online at www.securitiesactions.com. Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff's bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit www.baronandbudd.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca