AKRON (Aug. 16)—The Securities and Exchange Commission has notified Goodyear it will recommend civil or administrative action against the company and/or former executives concerning an accounting scandal.
The action stems from the SEC's investigation of Goodyear´s restatement of financial results, which the Akron-based tire maker announced in October 2003. The SEC notified Goodyear actions can be brought against the company for alleged violations of the Securities and Exchange Act of 1934 relating to the maintenance of books, records and internal accounting controls, the establishment of disclosure controls and the periodic SEC filing requirements, Goodyear said.
Goodyear restated its financial results after disclosing it overstated its profits by as much as $100 million from 1998 through June 2003. The company has been hit with at least 25 separate lawsuits that allege securities law violations on the part of the tire maker.
According to the "Well's Notice" the agency sent Goodyear, the SEC staff has made a preliminary decision to make this recommendation, but Goodyear has the opportunity to respond before a formal recommendation is issued. Similar notices also have been sent to the company's former chief financial officer and former chief accounting officer.
Goodyear said the company and its former officers are cooperating with the SEC.