Delphi Corp. agrees to $342.1M settlement

Washington -- Michigan's Delphi Corp. has agreed to a $342.1 million settlement wrapping up a series of lawsuits stemming from alleged accounting errors.

The costly settlement will cover the auto parts company's employees, retirees and shareholders who allegedly were affected by the accounting mistakes, The Detroit News said Sunday.

The lawsuits alleged investors were misled by the errors, while company executives inappropriately used retirement funds to invest in company stock.
The shareholders' attorneys called the settlement a landmark decision for such cases.

"Obtaining such a large settlement from a corporate entity in bankruptcy is virtually unprecedented," a statement from the lawyers said.

The company's insurance provider is expected to pay $22.5 million of the settlement, leaving the company to cover the remaining amount.

Once all of the lawsuits are finalized, the Detroit News said, Delphi Corp. will officially be allowed to exit bankruptcy.

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