Report: Four former Delphi execs set to go on trial
Filed under: Government/Legal, GM
The Securities and Exchange Commission is moving forward with charges against four former Delphi executives, including the company’s ex-CEO, J.T. Battenberg III. Paul Free, the company’s former controller and chief accounting officer, Milan Belans, who served as the director of capital planning and Catherine Rozanski, Delphi’s former accounting director are all facing a civil suit along with Battenberg in relation to four suspect transactions the company made in 2000 and 2001. The SEC alleges that Delphi intentionally misled investors by understating expenses, overstating net income and falsely reporting reduction of company expenses, effectively misleading investors.
The group’s lawyers, meanwhile, are expected to argue that the company underwent a “combative and confusing” process as it spun off from General Motors in 1999. As a result, GM pressured Delphi to keep prices low while the company was expected to meet earnings expectations. Delphi eventually declared bankruptcy, but not before closing down many of its U.S.-based plants and cutting pension benefits for many of its retirees.
[Source: Detroit Free Press]
Report: Four former Delphi execs set to go on trial originally appeared on Autoblog on Tue, 19 Oct 2010 08:01:00 EST. Please see our terms for use of feeds.
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