Delphi settlement with SEC approved
Bankruptcy judge finds settlement is fair
Bankrupt car parts manufacturer Delphi
– the former General Motors subsidiary – has had its settlement with the
US Securities and Exchange Commission
approved by a bankruptcy judge.
The settlement is in relation to civil fraud charges that stemmed from years
of accounting improprieties.
Judge Robert
Drain, at a hearing in the US Bankruptcy Court for the Southern District of
New York, ruled that the settlement with the SEC was in Delphi’s best interest
and was fair to Delphi shareholders.
This follows the SEC alleging that Delphi and 13 individuals – including
former executives – participated in or aided multiple schemes that misstated the
company’s finances from 2000 to 2004.
Delphi settled without admitting or denying the charges and faced no
financial penalty.
Further reading:
GM boss promises to strengthen internal accounting
GM to report ‘rectified’
accounts