Stockholders v Federal-Mogul Corporation
Federal-Mogul Corporation Stockholders Recover $1.5 Million
The parties have reached a tentative $1.5 million settlement of a class action filed against automotive parts manufacturer Federal-Mogul Corporation (OTCBB: FDMLQ, formerly NYSE: FMO) and certain of its officers and directors by stockholders who purchased the company's common stock between October 22, 1998, and May 25, 2000. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. To recover under the settlement, a completed proof of claim postmarked no later than January 9, 2004, must be mailed to the claims administrator.
The action claims that the defendants' material omissions and the dissemination of materially false and misleading statements regarding Federal-Mogul's acquisition integration, revenue and earnings artificially inflated the company's stock price to $64.875 per share.
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for January 12, 2004.
