[March 08, 2005] Milberg Weiss Announces the Filing of a Securities Class Action Suit against Molex, Inc., John H. Krehbiel Jr., Frederick A. Krehbiel, J. Joseph King, Louis Hecht and Diane S. Bullock Tweet NEW YORK --(Business Wire)-- March 8, 2005 -- The law firm of Milberg Weiss Bershad & Schulman LLP announces that it has filed a class action lawsuit on behalf of purchasers of the securities of Molex, Inc. ("Molex" or the "Company") (NASDAQ: MOLXE) between April 15, 2004 and February 14, 2005 inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss's website at www.milbergweiss.com The action is pending in the United States District Court for the Northern District of Illinois against defendants Molex Incorporated, John H. Krehbiel Jr., Frederick A. Krehbiel, J. Joseph King, Louis Hecht and Diane S. Bullock. The complaint alleges that Defendants issued, or caused to be issued, false and misleading statements during the Class Period to artificially inflate the value of Molex stock. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company omitted $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 of 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; (6) that as a result of the above, the Company's financial results were materially inflated at all relevant times; and (7) that during the Class Period, Company insiders sold 1,222,981 shares of Molex securities for proceeds of $35.4 million. Beginning on April 15, 2004, the Company provided positive guidance to the market on its operations and profitability for the fourth quarter of fiscal year 2004. Just days later, Company insiders Martin Stark, Louis Hecht, John Krehbiel and Frederick Krehbiel sold 174,969 shares of stock for total proceeds of $11.4 million. While in violation of GAAP, the Company issued another press release announcing record revenues on July 27, 2004. Two days after this announcement, Defendants John and Frederick Krehbiel unloaded 481,750 shares for proceeds of $13.2 million. 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. The Company also revealed that it identified certain improper accounting practices. Deloitte & Touche LLP, the Company's independent auditors, resigned on November 13, 2004, when the Company refused to remove its CEO and CFO. After engaging Ernst & Young LLP as its new auditor, the Company announced on February 14, 2005 further adjustments to the first quarter of fiscal year 2005 and possibly other periods. Immediately following the February 14, 2005 press release, Molex's stock fell $3.34 per share, or 11.6 percent, on unusually high trading volume of 1.89 million shares, from its closing price of $28.79 on February 14, 2005, to a closing price of $25.45 on February 15, 2005. If you bought the securities of Molex between April 15, 2004 and February 14, 2005 and sustained damages, you may, no later than May 2, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action. Milberg Weiss Bershad & Schulman LLP (www.milbergweiss.com) has over 100 lawyers in offices in New York City, Boca Raton, Los Angeles, Delaware, Seattle and Washington, D.C., and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website or any of these offices for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: -0- *T Steven G. Schulman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: [email protected] Or Maya Saxena [email protected] Joseph E. White [email protected] 5200 Town Center Circle, Suite 600 Boca Raton, FL 33486 Phone number: (561) 361-5000 Website: http://www.milbergweiss.com *T [ Back To TMCnet.com's Homepage ]