LOS ANGELES, March 30, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Delphi Corporation ("Delphi" or the "Company")(NYSE:DPH) between January 17, 2001 and March 3, 2005, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Delphi and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. 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 defendants issued materially false and misleading financial statements as a result of Delphi's improper accounting for off-balance sheet financing and vendor rebates.
On March 4, 2005, the Company reported to the Securities and Exchange Commission that the preliminary results of an ongoing internal investigation by the Company's Audit Committee indicate "certain prior transactions involving the receipt of rebates, credits or other lump-sum payments from suppliers and off-balance sheet financing of certain indirect materials and inventory were accounted for improperly." The Company further stated that, based on information to date, the improper accounting for off-balance sheet financing transactions may have resulted in the Company overstating cash flow from operations for 2000 by approximately $200 million, and that the improper accounting for rebate transactions resulted in the Company overstating its 2001 pre-tax income under Generally Accepted Accounting Principles (GAAP) by approximately $61 million. The Company also reported that the Audit Committee has concluded, as a result of its continuing investigation, that "audited financial statements and related independent auditors' reports for 2001 and subsequent periods as a result of the unwinding of the improperly recorded transactions, should no longer be relied upon and a restatement will be required." This news shocked the market, causing Delphi stock to fall $5.41 per share - a one-day drop of 14% - to close on March 4, 2005, at $5.46, which was 68% below the Class Period high of $17.40. Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than May 6, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.