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CHAGRIN FALLS, Ohio, March 21, 2005 /PRNewswire via AP/
Scott + Scott, LLC, which has filed an ERISA (Employee Retirement Income Securities Act of 1974) case on behalf of Delphi (NYSE: DPH) ERISA plan participants, after investigation, filed a similar lawsuit on behalf of General Motors (NYSE: GM) plan participants which include current and former General Motors employees and their beneficiaries. The GM ERISA plans at issue currently are:
-- The General Motors Personal Savings Plan (PSP) -- The General Motors Savings-Stock Purchase Programs -- The GMAC Mortgage Group, Inc. Savings Incentive Plan
The complaint filed represents those who participated in the GM Plans/Programs since March 17, 1999. Since that date, the stock price has fallen over 50%. It is alleged that General Motors has been struggling for years to fund high health care costs, skyrocketing materials costs, pension costs, and more. It is also alleged that the Company has experienced significant problems with their financing division. GM stock traded at just above $28 per share at the close last week. Meanwhile, it has been reported that the Company is set to dump up to 28% of its non-union workers. The law firm is still investigating the legality of other benefits stripped away from employees.
You can reach attorney Neil Rothstein at nrothstein@scott-scott.com or at 800/404-7770 (EST), 800/332-2259 (PST) or directly if needed at 619/251-0887. General Motors is based in Detroit, Michigan. Shareholders or other interested individuals may contact the firm's Connecticut office before 12 p.m. or later on the West Coast.
ERISA-EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
The provisions of ERISA cover most private sector employee benefit plans. ERISA sets uniform minimum standards to assure that employee benefit plans are established and maintained in a fair and financially sound manner. In addition, employers have an obligation to provide promised benefits and satisfy ERISA's requirements for managing and administering private pension plans. Persons and entities that manage and control plan funds have a fiduciary duty to:
In general, persons who exercise discretionary authority or control over management of a plan or disposition of its assets are "fiduciaries" for purposes of ERISA. Fiduciaries are required to discharge their duties solely in the interest of plan participants and beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable expenses of administering the plan. In discharging their duties, fiduciaries must act prudently and in accordance with documents governing the plan, to the extent such documents are consistent with ERISA. Certain transactions between an employee benefit plan and "parties in interest," which include the employer and others who may be in a position to exercise improper influence over the plan, are prohibited by ERISA and may trigger civil monetary penalties under ERISA. Such plans are normally insured.
DELPHI ERISA LITIGATION
Scott + Scott, LLC's Ohio office recently filed a lawsuit on behalf of current and former Delphi Corp. (NYSE: DPH) employees/plan participants and their beneficiaries. Scott + Scott, LLC (http://www.scott-scott.com) filed this case at the client's request on behalf of participants (current and former employees) and beneficiaries of the Delphi Corporation's pension plans. The lawsuit is on behalf of those participants since May 28, 1999 to the present time who were in the (1) Delphi Savings-Stock Purchase Program for Salaried Employees in the U.S.; (2) Delphi Personal Savings Plan for Hourly- Rate Employees in the U.S.; (3) ASEC Manufacturing Savings Plan; and (4) Delphi Mechatronic Systems Savings-Stock Purchase Program. Notably, most of these plaintiffs spent most of their career under the GM Umbrella. You may ask any questions pertinent to any benefits including health benefits, early retirement, disability, stock purchases, etc. Shareholders who purchased in the open market can also contact the firm for information. Delphi has a strong employee presence in Ohio, but the firm has been contacted by individuals in over six states including Indiana, Georgia, New York, Michigan and Wisconsin.
For more information please see previous press releases. You can obtain a copy of the complaint by contacting Scott + Scott, LLC.
The complaint charges fiduciaries of the plans with violations of the Employee Retirement Income Security Act of 1974. The lawsuit alleges that plan fiduciaries breached such duties and responsibilities by, among other things, failing to investigate the prudence of investing in Delphi stock and by making misrepresentations about the Company's accounting practices dating back to 1999. It is alleged that defendants made various material misrepresentations negligently and by the negligent manipulation and disclosure of such facts. Upon these disclosures, Delphi's stock dropped to as low as $5.41 per share before closing at $5.46 per share on March 4, 2005, some 68% below the Class Period high of $17.40 per share and a one-day drop of 14%, on volume of 24 million shares. The stock is currently trading at $5.12 per share. Many current and former Delphi employees have already chosen to participate in this lawsuit. These employees are organizing a structure to direct the lawsuit. Those employees who choose to participate in the lawsuit can do so confidentially. It is unlawful for any fiduciary or defendant to take any retaliatory action against any employee who chooses to participate in the suit. Scott + Scott has heard from significant numbers of plan participants.
Delphi is a global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers. Delphi has approximately 185,000 employees and operates 171 wholly owned manufacturing sites, 42 joint ventures, 53 customer centers and sales offices and 33 technical centers in 40 countries.
Scott + Scott, LLC is a firm that devotes a good part of its practice to representing current and former employees who have lost a significant portion of their retirement savings in their companies' 401(k) and/or employee stock ownership plans. The firm's offices are located in Colchester, Connecticut; San Diego, California; and Chagrin Falls, Ohio. For more information about the lawsuit or this press release, please e-mail nrothstein@scott-scott.com . You can dial direct in California at 619/233-4565 or toll-free as stated above. Scott + Scott, LLC dedicates itself to client communication and satisfaction. It represents individuals, foundations, corporations and others nationwide in securities, antitrust and employee litigation. Take the time to find out more about the firm, its practice and other cases. It currently serves as Lead Counsel on behalf of the workers of Shell/Royal Dutch Petroleum If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein as stated above or by cell: 619/251-0887. You can fax us at 619/233-0508.
Scott + Scott, LLC is based at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable U.S. federal law. For more information about this case, please see earlier announcements.
SOURCE Scott + Scott, LLC
Neil Rothstein of Scott + Scott, LLC, +1-800-404-7770, or +1-619
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