Delphi CEO Resigns from Sara Lee Board Amidst SEC Charges

J.T. Battenberg III, the former CEO of Delphi Corp., has resigned from the board of directors at Sara Lee Corp. amid civil fraud charges filed by the Securities and Exchange Commission (SEC). This move comes after the SEC settled with some of the Delphi individuals charged, but Battenberg is among seven individuals fighting the charges, which include a $237 million warranty dispute with General Motors. The charges stem from past accounting practices conducted at Delphi, which filed for bankruptcy in 2005. Battenberg's resignation allows Sara Lee to reduce the size of its board from 12 directors to 11.

Key Takeaways:

J.T. Battenberg III, former CEO of Delphi Corp., resigned from Sara Lee Corp.'s board of directors following SEC charges of civil fraud.
The charges include a $237 million warranty dispute with General Motors, part of Delphi's bankruptcy in 2005.
Battenberg is one of seven individuals fighting the charges, which stem from Delphi's past accounting practices.
Delphi filed for bankruptcy in 2005, bleeding billions of dollars due to high labor costs, falling domestic auto production, and other factors.
The SEC has settled with some Delphi individuals charged, but Battenberg chose to resign rather than defend himself against the lawsuit.
Battenberg cited the lawsuit as a distraction for Sara Lee shareholders and believed his resignation was in the best interest of the company.
Sara Lee expects to reduce the size of its board from 12 directors to 11 following Battenberg's resignation.

Statistics:

$237 million: The amount of the warranty dispute with General Motors.
2005: The year Delphi Corp. filed for bankruptcy.
1999: The year General Motors spun off Delphi Corp. as a subsidiary to Sara Lee Corp.
2006: The year Battenberg resigned from Sara Lee Corp.'s board of directors.

Sources:

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