NEW YORK, April 2 2004 – LAWFUEL – The Law News Network — Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of all persons who purchased the
securities of Delphi Corporation (“Delphi” or the “Company”) (NYSE: DPH)
between April 12, 2000 and March 3, 2005, inclusive, (the “Class Period”)
against defendants Delphi and certain officers of the Company.
The case name is Gaines v. Delphi Corporation, et al. A copy of the
complaint filed in this action is available from the Court, or can be viewed
on the Wolf Haldenstein Adler Freeman & Herz LLP website at
http://www.whafh.com.
The complaint alleges that defendants violated the federal securities laws
by issuing materially false and misleading statements throughout the Class
Period that had the effect of artificially inflating the market price of the
Company’s securities.
In connection with the allegations set forth in the complaint, Wolf
Haldenstein is also considering additional claims specifically on behalf of
employees of Delphi. This investigation centers on possible violations of the
Employee Retirement Income Security Act of 1974 in connection with the
holdings of Delphi common stock in the retirement plans. The investigation is
examining whether the Company, and fiduciaries of the retirement plans,
breached their fiduciary duties to the Plan, and the employees who
participated in the Plan, by allowing the Plan to continue to offer Delphi
common stock as an investment option and utilize it as a matching contribution
when the Company and fiduciaries knew, or should have known, that it was an
inappropriate investment because of the financial condition of the Company.
Members of any Delphi sponsored 401(k) Plans, including current or former
employees, who purchased or acquired Delphi stock through one of the plans may
contact Wolf Haldenstein concerning their rights in this matter. The affected
retirement plans include the Delphi Retirement Plan, Delphi Union 401(K) Plan,
Delphi Products Savings Investment Plan, and the Delphi Products Employee
401(K) Savings Plan.
The Complaint alleges that during the Class Period, defendants made
statements that were materially false and misleading when made because
defendants failed to disclose the following adverse facts: (i) that improper
accounting for off-balance sheet financing transactions in 2000 resulted in
the Company overstating cash flow from operations, determined in accordance
with Generally Accepted Accounting Principles (“GAAP”), for that year by
approximately $200 million; (ii) that improper accounting for certain rebate
transactions, credits or other lump-sum payments from information technology
service providers resulted in the Company overstating pre-tax income under
GAAP in excess of $100 million in 2001 and prior periods; (iii) that the
Company prematurely recognized revenue for technology contracts and rebates
when it should have spread them over the life of the contract; (iv) that it
improperly capitalized expenses over time, rather than recognizing them
immediately and boosted cash flow from operations and pretax earnings by
claiming it sold assets and inventory that it had actually agreed to buy back
later; (v) that the Company’s financial statements were not prepared in
accordance with GAAP; (vi) that the Company lacked adequate internal controls
and was therefore unable to ascertain the true financial condition of the
Company; and (vii) that as a result, the Company’s reported revenue, net
income and financial results were materially overstated during the Class
Period.
If you purchased Delphi securities during the Class Period, you may
request that the Court appoint you as lead plaintiff by May 6, 2005. A lead
plaintiff is a representative party that acts on behalf of other class members
in directing the litigation. In order to be appointed lead plaintiff, the
Court must determine that the class member’s claim is typical of the claims of
other class members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members may together
serve as “lead plaintiff.” Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead plaintiff.
You may retain Wolf Haldenstein, or other counsel of your choice, to serve as
your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities
class actions and derivative litigation in state and federal trial and
appellate courts across the country. The firm has approximately 60 attorneys
in various practice areas; and offices in Chicago, New York City, San Diego,
and West Palm Beach. The reputation and expertise of this firm in shareholder
and other class litigation has been repeatedly recognized by the courts, which
have appointed it to major positions in complex securities multi-district and
consolidated litigation.
If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New
York 10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq.,
Christopher S. Hinton, Esq., or Derek Behnke), via e-mail at
[email protected] or visit our website at http://www.whafh.com. All e-mail
correspondence should make reference to Delphi.
