DETROIT -- After 11 weeks of trial, the civil fraud case against former Delphi Corp. CEO J.T. Battenberg III went to a U.S. District Court jury here last week.
Battenberg, 67, is accused by the government of misleading Delphi investors in 2000 by misstating as pension claims a $237 million payment Delphi made to GM. The government says the payment was for warranty costs.
The accounting treatment inflated Delphi earnings in the third quarter of 2000 and for the full year and hid the true state of Delphi's finances, the government alleges.
Battenberg, a co-defendant in the case with his former chief accounting officer Paul Free, said he relied on advice from internal CPAs and outside auditors. Both men face fines if found liable; neither faces criminal charges.