VC Visteon Corporation

Shareholder Class Action Filed Against Visteon Corp. By The Law Firm of Schiffrin & Barroway, LLP RADNOR, Pa., Feb. 25 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Michigan on behalf of all securities purchasers of Visteon Corp. (NYSE:VC) ("Visteon" or the "Company") between January 23, 2004 and January 31, 2005, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint charges Visteon, Peter Pestillo, Michael Johnston, Glenda J. Minor, Daniel R. Coulson and James Palmer with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company continued to maintain unprofitable product lines, such as glass and powertrain systems, even when faced with declining North American auto sales and rising raw-material costs; (2) that the Company was overly dependent on Ford Motor Co. ("Ford"), as 70 percent of Visteon's revenue came from Ford; (3) that the Company failed to adequately control costs; (4) that the Company improperly accounted for certain retiree health care and pension benefits, and income taxes and as a result Visteon had to reverse $9 million in expense reductions for U.S. post-retirement life and health care costs and to adjust the valuation allowance on deferred tax assets by $17 million; (5) that as a result of the foregoing the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP") and were materially inflated at all relevant times; and (6) that as a consequence of the above, the defendants had no reasonable basis for positive statements about Visteon's financial condition. On January 31, 2005, Visteon announced preliminary fourth quarter and full year results for 2004. For the full year 2004, Visteon recorded a net loss of $1.489 billion, or $11.88 per share. In addition, Visteon's management has recommended the review and preliminary restatement of the Company's financial statements for 2002, 2003 and the first three fiscal quarters of 2004. News of this shocked the market. Shares of Visteon fell $0.51, or 6.43 percent, on January 31, 2005 to close at $7.42 per share. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/. If you are a member of the class described above, you may, not later than April 26, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Darren J. Check, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Marc A. Topaz, Esq. or Darren J. Check, Esq., Schiffrin & Barroway, LLP, +1-888-299-7706, +1-610-667-7706 or Web site: http://www.sbclasslaw.com/

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