Detroit, MI: (Jan-13-08) A class action lawsuit was brought against Delphi Corp., by shareholders including the Mississippi Public Employees Retirees System and the Teachers Retirement System of Oklahoma. The suit, filed in March 2005, alleged that company officials engaged in a wide-ranging fraudulent scheme that sought to inflate share prices by issuing misleading earnings statements. Records show that the Troy, MI-based company filed for bankruptcy about seven months later.
Sources stated that as part of a settlement reached, US District Judge Gerald Rosen granted final court approval of a potential $284.1 million class action settlement. He also approved a separate $47 million settlement for current and former employees who invested in Delphi through their retirement plans. The settlements will require approval from the bankruptcy court. Delphi officials stated that the company intends to exit bankruptcy by the end of February 2008 if creditors and equity holders ratify its reorganization plan. [
