CHAGRIN FALLS, Ohio, March 28, 2005 – LAWFUEL – The Law News Network — Scott + Scott, LLC, which has filed an employee benefits case against Delphi Corp. (NYSE:DPH – News), is now investigating Dana Corporation’s (NYSE:DCN – News) lowering of its first quarter estimate of 11 to 13 cents a share from previous estimates of 17 to 23 cents a share.
This stock closed at its 52 week low last week down about 40% from the 52 week high of $22 per share. Dana Corporation (Dana) is an independent supplier of modules, systems and components for light, commercial and off-highway vehicle original equipment (OE) manufacturers globally and for related OE service customers. Its products are used in passenger cars and vans; sport-utility vehicles (SUVs); light, medium and heavy trucks; recreational vehicles and motor homes, and a range of off-highway vehicles. The Company’s operations are organized into two principal business units: Automotive Systems Group, and Heavy Vehicle Technologies and Systems Group. Dana is also a provider of lease financing services in selected markets through its wholly owned subsidiary, Dana Credit Corporation. Spicer, Victor Reinz, Clevite, Glacier and Vandervell are the Company’s primary trademarks. In November 2004, the Company sold its automotive aftermarket businesses to Affinia Group Inc. On or about March 16, 2005, Dana Mauritius Limited (a Dana wholly-owned subsidiary) and Dongfeng Motor Corp. of China entered into a joint venture which was organized under the laws of the People’s Republic of China.
Scott + Scott, LLC’s Ohio office recently filed a lawsuit on behalf of current and former Delphi Corp. (NYSE:DPH – News) employees/plan participants and their beneficiaries. The Class Action Lawsuit filed last Friday is brought pursuant to ERISA. 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 pension plans. The lawsuit 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. Notably, most of these plaintiffs spent most of their career under the GM Umbrella. 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. Battenberg served as Delphi Corp.’s founding chairman and chief executive since 1999. 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. 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 – News) 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. A similar lawsuit was also filed on behalf of General Motors (NYSE:GM – News) plan participants. Both Delphi and Dana do substantial business with General Motors.
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 [email protected] . You can dial direct in California at 619/233-4565 or toll-free. 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. Visit our website at http://www.scott-scott.com .
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.
Scott + Scott, LLC