Class action lawsuit forming against Federal-Mogul

SOUTHFIELD, Mich. (June 12)—A Los Angeles law firm has filed a class action lawsuit against Federal-Mogul Corp. on the grounds it violated several federal securities laws. The Law Offices of Lionel Z. Glancy allege Federal-Mogul disseminated materially false and misleading statements and had material omissions regarding the nature of acquisition, integration, revenue and earnings. Those violations artificially inflated the supplier´s stock price to a high of $64.875, the firm said in a written release. Federal-Mogul has not yet been served with papers, a spokeswoman said before adding, "Our expectations are that once we are served, we would find this is totally without merit."