Molex, Inc. is engaged in the manufacture and sale of electronic components. The Company designs, manufactures and distributes more than 100,000 products, including terminals, connectors, planar cables, cable assemblies, interconnection systems, fiber-optic interconnection systems, backplanes, mechanical and electronic switches and other products.

According to a press release dated March 2, 2005, the complaint charges Molex and certain of its former directors and/or officers with violations of the Securities Exchange Act of 1934.

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 hid $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 for 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; and (6) that as a result of the above, the Company's financial results were materially inflated at all relevant times.

The complaint further alleges that on or around 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 and that its Chief Financial Officer had been replaced. The Company also revealed that it identified certain improper accounting practices. On November 15, 2004, Molex issued a press release announcing that Deloitte & Touche LLP had resigned as the Company's independent auditor. On February 14, 2005, Molex released its financial and operational results for the second quarter ended December 31, 2004 and the restated results for the Company's first fiscal quarter ended September 30, 2004, which reflected the appropriate adjustments given the accounting irregularities. As a result of this news, shares of Molex fell $3.34 per share or 11.60 percent, on February 15, 2005, to close at $25.45 per share.

If you bought Molex Incorporated securities between July 27, 2004 and February 14, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.