Vultures gather round Goodyear

The image of scavengers circling a recently-dead corpse may be premature in the case of Goodyear, but it is one that comes irresistibly to mind as the news breaks of more and more firms of lawyers initiating class action lawsuits, claiming damages against the company and named executives following the recent announcement that income had been overstated by up to $100 million. Five separate law firms announced towards the end of last week that they would begin an action (the announcement from Goodyear was only made on the Thursday, so these were certainly quick off the mark) and, so far this week, another five companies have joined the list, with no doubt more still to come. So far, the effect on Goodyear’s stock has been negligible, with shares closing yesterday up 21 cents, at $6.