A judge has tentatively approved a $38.25 million settlement to be paid by Deloitte & Touche to investors in Delphi.
Judge Gerald E. Rosen has scheduled a hearing on April 29 to determine whether the proposed settlement should be approved by the court as fair, reasonable and accurate. He will also decide whether the co-lead counsel's application for an award of attorney's fees and reimbursement of expenses should be approved, whether the claims against Deloitte should be dismissed with prejudice, and other matters he deems appropriate.
Deloitte had been the car parts maker's outside accountant. Deloitte agreed to the settlement in late December as part of a larger $325 million settlement in a class action case brought by Delphi investors.
Delphi, a former unit of General Motors, filed for bankruptcy protection in 2005 and acknowledged that it had inflated hundreds of millions of dollars in earnings after its spin-off from GM. The Securities and Exchange Commission found that Delphi manipulated its earnings between 2000 and 2004 in various ways, including hiding a $237 million transaction with GM in 2000 involving warranty costs.
