SEC Recommends Goodyear Penalties

(Akron/Tire Review) The US Securities and Exchange has informed Goodyear Tire & Rubber Co that it is recommending civil and/or administrative enforcement action against the company in connection with Goodyear’s previously acknowledged accounting problems.

This “Wells Notice” has been issued in connection with the SEC’s investigation into accounting matters included in the company’s restatement of financial results, announced in October 2003, and related public filings. Wells Notices have also been issued to a former Goodyear CFO and a former chief accounting officer.

With the notice, the SEC is claiming Goodyear violated the Securities and Exchange Act of 1934 relating to the maintenance of books, records and internal accounting controls, the establishment of disclosure controls and procedures, and the periodic SEC filing requirements.

Recipients of “Wells Notices” have the opportunity to respond to the SEC staff before the staff make a formal recommendation on whether any action should be brought by the agency.