Delphi Class Action Lawsuit

Delphi Financial Group is a financial company with its main focus is on many types of business insurance.  The company features on the US stock exchange (NYSE:DFG).

Delphi was involved in a class action lawsuit along after it merged with Tokio Marine.  A settlement was announced during April of 2012.  The lawsuit stated that the defendants were in violation of federal security law and that they had put forth misleading or false statements which resulted in inflation of the market price of their securities.

Shareholders buying these securities between January 2001 and March 2005 were wronged and instigated the lawsuit.  The wrong doing was found by U.S. Securities and Exchange Commission who undertook an investigation finding that the profits laid out by Delphi had been inflated.

On May 16 of 2012 it was announced that a $49 million settlement was in order.  On July 31 of 2012 there will be a settlement hearing in the Court of Chancery Courthouse of  Georgetown.  They will determine the Settlement Class and decide whether the proposed Settlement is adequate.    They will also determine whether Release Claims should be dismissed, and whether the Allocation Plans are adequate and if the fees and reimbursement amounts for attorneys are reasonable.

This entry was posted on Tuesday, July 17th, 2012 at 1:47 am and is filed under Delphi. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

 

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