News

All Charges in SEC Case against McDonald Dismissed

08.04.09

On August 4, 2009, the Honorable Avern Cohn, United States District Court, Eastern District of Michigan, ordered the dismissal, with prejudice, of all charges against our client, Scot McDonald, in Securities and Exchange Commission v. Delphi Corporation, et. al., 2:06-cv-14891-AC-SDP. Mr. McDonald, the former Controller of EDS Corporation, had been charged by the SEC with aiding and abetting violations of Sections 13(a), 13(b) and 10(b) of the Securities and Exchange Act of 1933, and Rule 10b-5 promulgated thereunder. These charges stemmed from a fraud allegedly committed by Delphi Corporation and various Delphi employees in 2001. Throughout the SEC’s investigation and the subsequent litigation, we argued that Mr. McDonald did not aid and abet Delphi’s purported fraud, and did not violate the law in any way. During discovery, the SEC ultimately concluded that its case against Mr. McDonald should be dismissed. Thus, on August 4, 2009, the SEC agreed to dismiss all charges against Mr. McDonald.