NEW YORK, March 14, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Molex Incorporated ("Molex" or the "Company") (NASDAQ:MOLXE) between April 15, 2004 and February 14, 2005, inclusive (the "Class Period").
The complaint alleges that, on November 11, 2004, Molex announced it had replaced and demoted its Chief Financial Officer ("CFO"), delayed its most recent quarterly report to federal securities regulators, and reported it would record a charge against earnings as the result of inventory accounting issues. The Company's press release indicated that Deloitte & Touche LLP ("Deloitte"), the Company's independent auditors, placed the blame on the Company's Chief Executive Officer ("CEO") and CFO, stating that the inventory accounting problems should have been disclosed to the auditor earlier. The Company's press release went on to say that, going forward, Deloitte would never accept the signature of the Company's CFO on the Company's financial results. Moreover, Deloitte was reviewing whether the signature of the Company's CEO on future financial filings deserved the same treatment as the CFO's. On November 15, 2004, Deloitte resigned as the result of Molex's refusal to remove its CEO or its CFO (who was demoted to Treasurer). Thereafter, in a regulatory filing, Deloitte disputed Molex's version of what took place leading up to Deloitte's resignation.
As a result of Deloitte's resignation, the Company's first quarter 2005 financial results were filed but were not independently audited. Accordingly, Nasdaq notified Molex that it was not in compliance with Nasdaq Marketplace Rule 4310(c)(14), which would subject to the Company to delisting from The Nasdaq National Market. Defendants remained recalcitrant; however, on December 10, 2004, both Molex's CEO and CFO were terminated at the insistence of the Company's new auditors.
On February 14, 2005, Molex reported that its results for its first quarter 2005, and possibly other quarters, were false when issued. Furthermore, the SEC was investigating the Company and did not agree with the Company's accounting treatment. On this news, the Company's stock dropped below $25 per share, causing the loss of millions of dollars of market capitalization and shareholder value, while several insiders reaped tens of millions of dollars in insider trading proceeds.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Molex securities on any world exchange between April 15, 2004 and February 14, 2005, and sustained damages, you may, no later than May 2, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.