Class action filings over Goodyear earnings restatement surge

AKRON (Oct. 30)—The number of lawsuits filed against Goodyear alleging securities law violations has reached at least 25. A Goodyear spokesman said the company doesn't "believe the lawsuits have any merit and we expect to prevail." The filings, each of which seeks class action status, were made in the days following Goodyear's revelation Oct. 22 that it overstated its profits by as much as $100 million from 1998 through June 2003 and is restating its financial results to correct the error. The 25 suits have been filed in the U.S. District Court for the Northern District of Ohio. The company blamed errors in its accounting and billing systems for the overstatements but noted its net cash position and access to credit facilities won't be affected by the adjustments.