Goodyear faces 6 class action suits over profits restatement

AKRON (Oct. 27)—Goodyear's decision to restate more than five years of earnings because of an accounting error has spawned at least six class-action lawsuits. The complaints charge Goodyear with violations of the Securities Exchange Act of 1934, essentially for issuing a series of material misrepresentations to the market from October 1998 to October 2003. Those actions, the law firms charge, artificially inflated the price of Goodyear's stock to the detriment of shareholders. A Goodyear spokesman said the company had not yet seen the complaints and could not comment. Goodyear announced Oct. 22 it will restate earnings from 1998 through the first two quarters of 2003 because of errors in the implementation of a computerized accounting system and in inter-company billing. The restatement is expected to reduce net income over the period by up to $100 million and reduce shareholder equity by up to $120 million