CHICAGO, March 31, 2005 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that it has sued Molex Incorporated, ("Molex" or the "Company") (NASDAQ:MOLX) (formerly MOLXE) and certain of its officers and directors, in the United States District Court for the Northern District of Illinois. The shareholder lawsuit is on behalf of all persons and entities who purchased the securities of Molex Incorporated between April 15, 2004 and February 14, 2005, inclusive ("Class Period").
The Complaint alleges that Molex, along with certain of its officers and directors, violated the federal securities laws by issuing a series of materially false and misleading statements to the market. These misstatements have had the effect of artificially inflating the market price of Molex's securities and as a result of this inflation, certain Molex officers and directors were able to sell over $34 million worth of the Company's common stock at inflated prices.
If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Conor R. Crowley at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Molex.
According to the complaint, on November 11, 2004, Molex announced that it had replaced and demoted its Chief Financial Officer ("CFO"), delayed its latest quarterly report to federal securities regulators, and said it would report a charge against earnings because of inventory accounting issues. It is alleged that the Company's press release indicated that 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 the auditor earlier. Further, it is alleged that the Company's 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. The complaint claims that on November 15, 2004, Deloitte resigned, citing Molex's refusal to oust its CEO or its CFO (who had merely been demoted to Treasurer). Thereafter, it is alleged that in a regulatory filing, Deloitte disputed many of Molex's characterizations of what happened during the chain of events leading up to Deloitte's resignation. Likewise the complaint claims that as a result of Deloitte's resignation, the Company's first quarter 2005 financial results were filed without being audited. Thereafter the complaint claims that Molex was notified by the Nasdaq it was not in compliance with Nasdaq Marketplace Rule 4310(c)(14), which required Molex to file audited financial statements with the Securities and Exchange Commission ("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, the complaint claims that 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 and if you meet certain other legal requirements, you may file a motion in the Court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than May 2, 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. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist represents individual and institutional investors in class action, complex securities and corporate governance litigation. Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States, successfully prosecuting cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.