The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against Dana Corporation
October 06 2005 - 9:43AM
Business Wire
Goldman Scarlato & Karon, P.C., a law firm with offices in
Pennsylvania and Ohio, announces that a lawsuit has been filed in
the United States District Court for the Northern District of Ohio,
on behalf of persons who purchased or otherwise acquired publicly
traded securities of Dana Corporation ("Dana" or the "Company")
(NYSE:DCN) between March 23, 2005 and September 14, 2005,
inclusive, (the "Class Period"). The lawsuit was filed against Dana
and Michael J. Burns and Robert C. Richter ("Defendants"). If you
are a member of this class and wish to view a copy of a complaint
and join this class action, please e-mail us at penny@gsk-law.com
and request a copy of the complaint and a plaintiff certification.
If you are a member of the Class, you may move the Court no later
than December 5, 2005 to serve as a lead plaintiff for the Class.
Any member of the purported class may move the Court to serve as
lead plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent class member. However, if you choose
to remain an absent class member, unless and until a class is
certified, you are not represented by counsel. The complaint
alleges that Defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. Specifically, the complaint alleges that during the
Class Period, the Company made representations regarding the
Company's historical financial performance and condition that were
materially false and misleading. These statements were false and
misleading because: (1) the Company had improperly accounted for
price increases, inflating income in the second quarter of 2005;
(2) the Company's purported financial success was the result of
improper accounting; and (3) as a result the Company's guidance
lacked any reasonable basis and could not be met without a
significant drop in raw material prices. On September 15, 2005,
before the market opened, the Company issued a press release
announcing that it would restate second quarter results and that it
was dramatically reducing guidance for 2005, to $0.60 - $0.70 per
share from $1.30 - $1.45. In addition, the Company commented that
it may be in violation of certain loan covenants, and that it might
have to write down the value of certain U.S. deferred tax assets.
In reaction to the announcement, Dana's stock price fell
dramatically, declining from $12.78 per share on September 14, 2005
to $9.86 per share on September 15, 2005, a decline of
approximately 23%. If you bought Dana securities between March 23,
2005 and September 14, 2005, inclusive, and would like to obtain
information about the lawsuit, then you are invited to call (888)
753-2796 to speak with an advisor.
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