| Company: | Molex Incorporated |
| Ticker Symbol: | NASD: MOLXE |
| Class Period: | July 27, 2004 to February 14, 2005 |
| Date Filed: | Mar-03-05 |
| Lead Plaintiff Deadline: | May-02-05 |
| Court: | Northern District, IL |
| Allegations: |
A securities class action was commenced on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Molex Incorporated (Nasdaq:MOLXE) between July 27, 2004 and February 14, 2005, inclusive (the "Class Period").
The complaint alleges that Molex, Inc. (the "Company") failed to disclose: (1) that the Company hid $5.8 million in inventory expenses in order to inflate its earnings; (2) that as a result the foregoing Molex had to take an $9.1 million inventory charge; (3) that, in addition to hiding inventory expenses, the Company improperly accounted for its accrual for vacation pay, its recording of a contingent gain, and its recording of the first quarter profit-in-inventory charge; (4) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (5) that the Company lacked adequate internal controls; and (6) that as a result of the above, the Company's financial results were materially inflated at all relevant times.
On November 11, 2004, Molex announced that it was delaying the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 and that Diane S. Bullock had been replaced as Chief Financial Officer. The Company also revealed that it identified certain improper accounting practices. On November 15, 2004, Molex issued a press release announcing that Deloitte & Touche LLP had resigned as the Company's independent auditor. On February 14, 2005, Molex released its financial and operational results for the second quarter ended December 31, 2004 and the restated results for the Company's first fiscal quarter ended September 30, 2004, which reflected the appropriate adjustments given the accounting irregularities. As a result of this announcement, the price of Molex common stock fell $3.34 per share or 11.60 percent, on February 15, 2005, to close at $25.45 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint alleges that Molex, Inc. (the "Company") failed to disclose: (1) that the Company hid $5.8 million in inventory expenses in order to inflate its earnings; (2) that as a result the foregoing Molex had to take an $9.1 million inventory charge; (3) that, in addition to hiding inventory expenses, the Company improperly accounted for its accrual for vacation pay, its recording of a contingent gain, and its recording of the first quarter profit-in-inventory charge; (4) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (5) that the Company lacked adequate internal controls; and (6) that as a result of the above, the Company's financial results were materially inflated at all relevant times.
On November 11, 2004, Molex announced that it was delaying the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 and that Diane S. Bullock had been replaced as Chief Financial Officer. The Company also revealed that it identified certain improper accounting practices. On November 15, 2004, Molex issued a press release announcing that Deloitte & Touche LLP had resigned as the Company's independent auditor. On February 14, 2005, Molex released its financial and operational results for the second quarter ended December 31, 2004 and the restated results for the Company's first fiscal quarter ended September 30, 2004, which reflected the appropriate adjustments given the accounting irregularities. As a result of this announcement, the price of Molex common stock fell $3.34 per share or 11.60 percent, on February 15, 2005, to close at $25.45 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this Molex Inc. class action please fill in our form on the right to submit your complaint.
If you are a current or former employee of this company, and have 401(k) shares, please use this form to register your complaint. Thank you.
