Delphi Securities Litigation
Securities Litigation & Portfolio Management
NPR served as Co-Lead Counsel for Lead Plaintiff, Oklahoma Teachers Retirement System, and named Plaintiff, Oklahoma Law Enforcement Retirement System, in this matter, filed in the United States District Court for the Eastern District of Michigan (Detroit). This litigation involved claims under the Securities Act of 1933 and Securities Exchange Act of 1934 arising out of Delphi’s massive restatement dating back to its spin-off from General Motors. The United States Department of Justice, Securities and Exchange Commission, and United States Postal Inspector all conducted criminal and civil investigations into this matter. Delphi filed for bankruptcy protection, and this case proceeded against its officers and directors, outside auditors and certain third parties.
In July 2007, NPR reached a $284 million class settlement with Delphi and several of its former officers, directors and underwriters. The trial court granted final approval to this settlement on January 10, 2008. In its order, the court praised NPR not only for its sophistication and outstanding legal work, but also for our unwavering commitment to our clients:
The Court is able to add that it had extensive interaction, both on the record and in chambers, with all Co-Lead Counsel, and has been considerably impressed, not only by counsel’s skill, knowledge of the substantive and procedural law, and sophistication—all of which were consistently evident to the Court—but also by their dedication and commitment to their clients’ cause. In short, these lawyers have practiced at the highest levels of professional competency.
The settlement is believed to be one of the largest securities fraud settlements funded by a debtor outside of insurance. It also ranked as the 22nd largest securities fraud settlement in history at that time—a remarkable result given that the primary defendant was in bankruptcy.
NPR subsequently reached a $38.25 million settlement with Delphi’s former auditor, Deloitte & Touche. The Court granted final approval of that settlement on June 26, 2008.
The class was represented by NPR partners Bradley Beckworth, Jeffrey Angelovich and Susan Whatley and associates Drew Pate, Lisa Baldwin and Trey Duck.