CORAL SPRINGS, Fla., Nov. 4, 2005 (PRIMEZONE) -- The law firm of Mager & Goldstein LLP announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Ohio on behalf of all purchasers of securities of Dana Corporation ("Dana" or the "Company") (NYSE:DCN) between March 23, 2005 and September 14, 2005, inclusive (the "Class Period").
The Complaint charges that Dana, Michael J. Burns (CEO, Chairman) and Robert C. Richter (CFO) violated the Securities Exchange Act of 1934 by making materially false and misleading representations regarding the Company's performance, financial statements and expected earnings for 2005. Specifically, the defendants misrepresented and failed to disclose that: (1) the Company improperly recognized price increases in its commercial vehicle business; (2) the written certifications filed with the SEC by the Individual Defendants regarding Dana's financial condition contained misstatements and were patently false; (3) the Company lacked the proper personnel and internal controls to issue accurate statements and projections; and (4) defendants' guidance was devoid of any rational basis and despite their assurances, projected goals could not be met without a material drop in raw material prices.
Before the opening of regular trading on September 15, 2005, Dana issued a press release indicating that it would likely restate its financial results from the second quarter of 2005. In addition, Dana announced that it had substantially lowered its 2005 earnings guidance from $1.30 to $1.45 per share to $0.60 to $0.70 per share, a reduction of greater than 100%.
The market reacted to this news and the price of Dana stock tumbled drastically from $12.78 per share on September 14, 2005 to $9.86 per share on September 15, 2005, a one-day drop of 22.8% on unusually heavy trading volume.
If you purchased Dana Corporation securities between March 23, 2005 and September 14, 2005 and sustained damages, you may, no later than December 5, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative who acts on behalf of other class members in directing the litigation. Under certain circumstances, several class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as lead plaintiff. You may retain Mager & Goldstein LLP, or other counsel, to represent you in this action.
Mager & Goldstein LLP has offices in Pennsylvania and Florida. The firm's attorneys have been litigating complex commercial matters for over twenty years.
If you wish to discuss the lawsuit against Dana Corporation with us, or have any questions about this notice or your legal rights with regard to this case, please contact the following attorney:
Jayne Arnold Goldstein 2825 University Drive Suite 350 Coral Springs, Florida 33065 Telephone: 954-341-0844 Toll Free: 866-284-3280 E-mail: jgoldstein@magergoldstein.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.