MINNEAPOLIS, April 19, 2005 (PRIMEZONE) -- Lockridge Grindal Nauen P.L.L.P. announces the filing yesterday of a class action lawsuit, in the United States District Court for the Eastern District of Michigan, on behalf of persons who have been participants in or beneficiaries of Delphi Corporation's (NYSE:DPH) Personal Savings Plan for Hourly-Rate Employees in the U.S. (the "Plan") since May 28, 1999.
The Complaint charges fiduciaries of the Plan with violations of the Employee Retirement Income Security Act of 1974, including allegations that Plan fiduciaries breached their fiduciary duties and responsibilities by, among other things, failing to investigate the prudence of Plan investments in Delphi stock and by making misrepresentations about the Company's accounting practices dating back to1999. 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 during the Class Period, defendants knew or should have known that Delphi issued materially false and misleading financial statements caused by Delphi's improper accounting for off-balance sheet financing and vendor rebates. As a result of these false statements, the Company's stock climbed to as high as $17.40 per share during the Class Period. Upon the disclosure of the Company's need to revise its financial statements, 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.
Plaintiffs are represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, has extensive experience representing shareholders in class actions, and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.