PHILADELPHIA, April 2 2005 – LAWFUEL – The Law News Network — The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Northern District of Illinois, on behalf of purchasers of the common stock of Molex Incorporated (“Molex” or the “Company”) (Nasdaq: MOLX – News) between April 15, 2004 through February 14, 2005, inclusive (the “Class Period”).
The Complaint alleges that the defendants violated Section 10b-5 of the Securities Exchange Act of 1934 by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission (“SEC”) during the Class Period. Specifically, the Complaint alleges that during the Class Period, the defendants caused Molex to issue materially false and misleading financial statements which caused the shares of Molex to trade at artificially inflated prices. Unbeknownst to the investment community, certain Molex officers and directors were able to sell over $34 million worth of the Company’s common stock at the inflated prices before the truth was disclosed.
On November 11, 2004, Molex announced that it delayed filing its latest quarterly report to the SEC and had replaced and demoted its Chief Financial Officer (“CFO”). It further announced that it would report a charge against earnings because of inventory accounting issues. According to the Company’s press release, its independent auditors, Deloitte & Touche LLP (“Deloitte”), faulted the Company’s Chief Executive Officer (“CEO”) and CFO, stating that problems regarding inventory accounting information should have been disclosed by them to Deloitte in a August 20, 2004 representation letter in connection with the audit of the Company’s financial statements for the year ended June 30, 2004. Further, the press release stated that Deloitte would never again accept the signature of the Company’s CFO on the Company’s financial results and was reviewing whether it would ever again accept the signature of the Company’s CEO on future financial filings.
On November 15, 2004, the Company issued another press release announcing the filing of its Quarterly Report on Form 10-Q and that Deloitte resigned, citing Molex’s refusal to oust its CEO or its CFO. Shortly thereafter, on November 30, 2004, Deloitte sent a letter to the SEC disputing the Company’s version of the course of events leading up to its resignation. As a result of Deloitte’s resignation, the Company’s first quarter 2005 financial results were filed without being audited. Subsequently, Molex was notified by the NASDAQ that it was not in compliance with NASDAQ Marketplace Rule 4310(c)(14), which required Molex to file audited financial statements with the SEC, and the Company’s securities were, therefore, subject to delisting from the NASDAQ National Market. On December 10, 2004, both Molex’s CEO and CFO were terminated at the insistence of the new auditors hired to replace Deloitte.
Finally, on February 14, 2005, Molex revealed that its results for its first quarter 2005, and possibly other quarters, were false when issued and that the SEC was investigating and did not agree with the Company’s accounting treatment. Following this news, the Company’s stock dropped below $25.00 per share, erasing millions of dollars of shareholder value.
If you purchased Molex securities during the Class Period, you may, no later than May 2, 2005, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Molex securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at [email protected] for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at [email protected] For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.