Spector, Roseman & Kodroff, P.C. Announces the Filing of a Class Action Suit on Behalf of Investors of Molex Incorporated
01 April 2005 - 7:01PM
PR Newswire (US)
Spector, Roseman & Kodroff, P.C. Announces the Filing of a
Class Action Suit on Behalf of Investors of Molex Incorporated
PHILADELPHIA, April 1 /PRNewswire/ -- The law firm of Spector,
Roseman & Kodroff, P.C. announces that a securities class
action lawsuit was commenced in the United States District Court
for the Northern District of Illinois, on behalf of purchasers of
the common stock of Molex Incorporated ("Molex" or the "Company")
(NASDAQ:MOLX) between April 15, 2004 through February 14, 2005,
inclusive (the "Class Period"). The Complaint alleges that the
defendants violated Section 10b-5 of the Securities Exchange Act of
1934 by issuing materially false and misleading statements
contained in press releases and filings with the Securities and
Exchange Commission ("SEC") during the Class Period. Specifically,
the Complaint alleges that during the Class Period, the defendants
caused Molex to issue materially false and misleading financial
statements which caused the shares of Molex to trade at
artificially inflated prices. Unbeknownst to the investment
community, certain Molex officers and directors were able to sell
over $34 million worth of the Company's common stock at the
inflated prices before the truth was disclosed. On November 11,
2004, Molex announced that it delayed filing its latest quarterly
report to the SEC and had replaced and demoted its Chief Financial
Officer ("CFO"). It further announced that it would report a charge
against earnings because of inventory accounting issues. According
to the Company's press release, 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 Deloitte in a August 20, 2004 representation letter in
connection with the audit of the Company's financial statements for
the year ended June 30, 2004. Further, the 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. On November 15, 2004, the Company
issued another press release announcing the filing of its Quarterly
Report on Form 10-Q and that Deloitte resigned, citing Molex's
refusal to oust its CEO or its CFO. Shortly thereafter, on November
30, 2004, Deloitte sent a letter to the SEC disputing the Company's
version of the course of events leading up to its resignation. As a
result of Deloitte's resignation, the Company's first quarter 2005
financial results were filed without being audited. Subsequently,
Molex was notified by the NASDAQ that it was not in compliance with
NASDAQ Marketplace Rule 4310(c)(14), which required Molex to file
audited financial statements with the 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, 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, you may, no
later than May 2, 2005, move to be appointed as a Lead Plaintiff in
this class action. A Lead Plaintiff is a representative, chosen by
the Court, that acts on behalf of other class members in directing
the litigation. The Private Securities Litigation Reform Act of
1995 directs Courts to assume that the class member(s) with the
"largest financial interest" in the outcome of the case will best
serve the class in this capacity. Courts have discretion in
determining which class member(s) have the "largest financial
interest," and have appointed Lead Plaintiffs with substantial
losses in both absolute terms and as a percentage of their net
worth. If you have sustained substantial losses in Molex securities
during the Class Period, please contact Spector, Roseman &
Kodroff, P.C. at for a more thorough explanation of the Lead
Plaintiff selection process. If you have relatively small losses,
your ability to participate in any recovery will be protected by
the Lead Plaintiff(s), and you need take no affirmative steps at
this time. If you wish to join this action, please visit
http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests, please contact plaintiff's counsel Robert
M. Roseman toll-free at 888-844-5862 or via e-mail at . For more
detailed information about the firm please visit its website at
http://www.srk-law.com/. Spector, Roseman & Kodroff, P.C.,
located in Philadelphia, Pennsylvania, concentrates its practice in
complex litigation including actions dealing with securities laws,
antitrust, contract and commercial claims. The firm is active in
major litigation pending in federal and state courts throughout the
United States. The firm's reputation for excellence has been
recognized on repeated occasions by courts which have appointed the
firm as lead counsel in numerous major class actions involving
violations of the federal securities laws and the federal antitrust
laws, and consumer fraud. As a result of the efforts of the firm,
and its members, hundreds of millions of dollars have been
recovered through judgments and settlements on behalf of thousands
of defrauded shareholders and companies. DATASOURCE: Spector,
Roseman & Kodroff, P.C. CONTACT: Robert M. Roseman of Spector,
Roseman & Kodroff, +1-888-844-5862 Web site:
http://www.srk-law.com/dbjoinaclassaction.asp
http://www.srk-law.com/
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