NEW YORK, April 5, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Delphi Corporation ("Delphi" or the "Company") (NYSE:DPH) between January 17, 2001 and March 3, 2005, inclusive (the "Class Period").
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 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 14% on March 4, 2005, closing at $5.46, which was 68% below the Class Period high of $17.40.
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 Delphi securities on any world exchange between January 17, 2001 and March 3, 2005, inclusive, and sustained damages, you may, no later than May 6, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.