SEC v. Delphi Case No. 2:06-cv-14891-DML-SDP
On October 30, 2006, the Commission filed a complaint (the “Complaint”) against {Delphi Corporation ("Delphi") and certain of its senior officers, accounting staff, and treasury staff. J.T. Battenberg, III, Alan Dawes, Paul Free, John Blahnik, Milan Belans, Catherine Rozanski, Judith Kudla, Scot Mcdonald, B.N. Bahadur, Atul Pasricha, Laura Marion, Stuart Doyle, and Kevin Curry}. The Complaint alleged that, from 2000 - 2004, the Defendant(s) violated the federal securities laws by materially misstating its financial condition and operating results in filings with the Commission, in offering documents, press releases, and other documents and statements disseminated to investors}. See Complaint.
On November 7, 2006, the Court entered Final Judgments against the Defendants, ordering them to pay disgorgement, prejudgment interest, and penalties the Court registry where they were to be held, along with any interest and income earned thereon, pending further order of the Court. See Final Judgment - Alan Dawes and Final Judgment - B.N. Bahadur. The Defendants paid a total of $1,256,257.00.
On August 1, 2023, the Court issued an order establishing a Fair Fund for the $1,256,257.00, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties, along with the disgorgement and prejudgment interest collected, could be distributed to harmed investors (the “Fair Fund”).
On the same date, the Court entered an order that appointed Miller Kaplan Arase LLP, as the Tax Administrator to fulfill the tax obligations of the Fair Fund, and appointed Joshua Braunstein as the Distribution Agent. See Order Establishing Fair Fund, Appointing Tax Administrator, and Appointing Distribution Agent.
On August 8, 2023, the Commission filed a motion to approve a distribution plan, together with a proposed distribution plan (the “Plan”). See the Commission’s Motion and the Plan.
On November 29, 2023, the Court issued an order approving the Plan. The Plan provides that the distribution of the Fair Fund shall be made to {compensate identified investors based on their losses on shares of Delphi Corporation (the “Security”) purchased or acquired between January 1, 2001, and March 21, 2005, due to the violations of the federal securities laws alleged in the Complaint. See the Court’s Order.
For more information, please reach out to the Distribution Agent:
Joshua Braunstein: braunsteinj@SEC.GOV
Last Reviewed or Updated: Jan. 12, 2024