CHAGRIN FALLS, Ohio, March 15, 2005 (PRIMEZONE) -- Scott + Scott, LLC's Ohio office recently filed a lawsuit on behalf of current and former Delphi Corp. employees/plan participants and their beneficiaries. The Class Action Lawsuit filed last Friday is brought pursuant to the Employee Retirement Income Security Act of 1974. The case was filed in Ohio.
Scott + Scott, LLC (http://www.scott-scott.com ) filed this case at the client's request on behalf of participants (current and former employees) and beneficiaries of the Delphi Corporation's (NYSE:DPH) pension plans. The lawsuit, in the United States District Court for the Southern District of Ohio, is on behalf of those participants since May 28, 1999 to the present time who were 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 800-404-7770 (EST) or 800-332-2259 (PST) or e-mail attorney Neil Rothstein at nrothstein@scott-scott.com . Mr. Rothstein can also be reached at 619/251-0887. You may ask any questions pertinent to any benefits including health benefits, early retirement, disability, stock purchases, etc. Shareholders who purchased in the open market can also contact the firm for information. Delphi has a strong employee presence in Ohio, but the firm has been contacted by individuals in over six states including Indiana, Georgia, New York, Michigan and Wisconsin.
Defendant J.T. Battenberg, III spent many years at General Motors (NYSE: GM). Battenberg served as Delphi Corp.'s founding chairman and chief executive since 1999. His retirement ended a career that spanned 44 years and 14 assignments at General Motors Corp. and Delphi, a GM spin-off. He held numerous positions at GM, including managing director of the automaker's continental division in Belgium; general manager of GM's overseas truck operations in England; and vice president of the former Buick-Oldsmobile-Cadillac Group's Flint luxury car division.
Alan S. Dawes, the Chief Financial Officer of Delphi, served as a director of the Company since June 2003. Since January 2003, Mr. Dawes had served as Vice Chairman and Chief Financial Officer of Delphi Corporation. Mr. Dawes was named Chief Financial Officer of Delphi Automotive Systems Corporation, a predecessor of Delphi, in August 1998 and director and Executive Vice President in charge of Finance, Mergers & Acquisitions and Information Technology in January 2000. He had been a Vice President of Delphi since November 1998. Prior to 1998, Mr. Dawes served in various executive capacities for General Motors Corporation, from which Delphi was separated in May 1999.
Dawes resigned after Delphi's audit committee expressed a loss in confidence, according to the committee's director. The committee's internal audit relates to a Securities and Exchange Commission investigation into Delphi's transactions with Electronic Data Systems (NYSE: EDS ) and other suppliers, it has been reported. Also, it has now been reported that the committee is examining the $237 million in cash payments to General Motors in 2000. to release it from certain warranty claims and future post-retirement obligations, and $85 million in credits Delphi received from General Motors in 2001. On March 9, Delphi announced that it would stop paying medical insurance in 2007 for 4,000 retired salaried workers and thousands of future retirees to save the company $500 million.
Then on March 11, 2005, Delphi Corp. said it had suspended employee purchases of its stock under U.S. retirement plans until it files necessary financial restatements with federal regulators. Delphi, it is reported, notified employees of the blackout period, it said in a filing with the U.S. Securities and Exchange Commission.
The complaint charges fiduciaries of the plans with violations of the Employee Retirement Income Security Act of 1974. The lawsuit alleges that plan fiduciaries breached such duties and responsibilities by, among other things, failing to investigate the prudence of investing in Delphi stock and by making misrepresentations about the Company's accounting practices dating back to 1999. It is alleged that defendants made various material misrepresentations negligently and by the negligent manipulation and disclosure of such facts. 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. The stock is currently trading at $5.12 per share. Many current and former Delphi employees have already chosen to participate in this 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. Scott + Scott has heard from significant numbers of plan participants.
Delphi is a global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers. Delphi has approximately 185,000 employees and operates 171 wholly owned manufacturing sites, 42 joint ventures, 53 customer centers and sales offices and 33 technical centers in 40 countries.
Scott + Scott, LLC is a firm 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. The firm's offices are located in Colchester, Connecticut; San Diego, California; and Chagrin Falls, Ohio. For more information about the lawsuit or this press release, please e-mail nrothstein@scott-scott.com . You can dial direct in California at 619/233-4565 or toll-free as stated above. Scott + Scott, LLC dedicates itself to client communication and satisfaction. It represents individuals, foundations, corporations and others nationwide in securities, antitrust and employee litigation. Take the time to find out more about the firm, its practice and other cases. It currently serves as Lead Counsel on behalf of the workers of Shell/Royal Dutch Petroleum If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein as stated above or by cell: 619/251-0887. You can fax us at 619/233-0508.
Scott + Scott, LLC is based at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable U.S. federal law. For more information about this case, please see earlier announcements.