CASES
Delphi
Class Period: May 28, 1999 to Nov 1, 2005
Summary of Case:
A class of participants in Delphi's 401(k) plans recently agreed to settle the lawsuit that they had brought against auto-parts supplier Delphi and other top executives at the Company. The lawsuit, originally filed by Scott+Scott on March 10, 2005, alleged that defendants breached their fiduciary duties under the Employee Retirement Security Act of 1974 ("ERISA"). Under the settlement agreement, which remain subject to federal bankruptcy court and federal district court approval, the class of participants in Delphi's employee retirement plans will receive an allowed interest in Delphi's Chapter 11 case in the amount of $24.5 million and $22.5 million in cash from insurance carriers.
The lawsuit followed the company's announcement in March 2005 that it would restate its financial results. The settlement will resolve the ERISA class-action lawsuits against Delphi and certain of the other defendants in the lawsuits. The final settlement provides a dismissal with prejudice of the class action lawsuits and a full release as to certain named defendants, including Delphi.
The District Court has scheduled a hearing on November 13, 2007 to consider final approval of the settlements. The parties expect to file an approval motion in the U.S. Bankruptcy Court on September 7, 2007, which would be scheduled for final hearing at a September 27, 2007 omnibus hearing.
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