Class Action Lawsuit News

Stull, Stull & Brody Announces Class Action against Molex Incorporated

Stull, Stull & Brody Announces Class Action against Molex Incorporated: "NEW YORK--(BUSINESS WIRE)--April 25, 2005--Notice is hereby given that a class action lawsuit was filed, on April 22, 2005, in the United States District Court for the Northern District of Illinois, against Molex Incorporated ('Molex' or the 'Company') (Nasdaq:MOLX; MOLXA), on behalf of purchasers of Molex publicly traded securities between July 27, 2004 and February 14, 2005, inclusive (the 'Class Period').

The complaint charges alleges that Molex violated federal securities laws by issuing false or misleading information. Specifically, the Complaint alleges that Molex hid $5.8 million in inventory expenses, it improperly accounted for accrual in vacation pay and it engaged in other accounting chicanery so that its reported financial results were in violation of Generally Accepted Accounting Principles ('GAAP'). On November 11, 2004, Molex announced that it was delaying the filing of its Form 10-Q and that Diane S. Bullock had been replaced as its Chief Financial Officer. On November 15, 2004, Molex announced that Deloitte & Touche LLP had resigned as its independent auditor. On February 14, 2005, Molex released its quarterly financial and operational results and more fully disclosed the extent of its accounting issues and corresponding investigations by the Securities and Exchange Commission ('SEC'). On this news, Molex stock fell from a close of $28.79 per share on February 14, 2004, to close at $25.45 per share on February 15, 2005." (Full story at link)

posted by Monkeyman @ 2:36 PM