Goodyear Gets Wells Notice

The Goodyear Tire & Rubber Company, the nation's largest tire maker, announced today that it received a "Wells Notice" from the Securities and Exchange Commission. (The press release can be found here)  The Wells Notice was given in connection with the SEC's investigation into accounting matters included in the company's restatement of financials, announced on October 22, 2003.

The Wells Notice states that the SEC staff intends to recommend that a civil or administrative enforcment action be brought against Goodyear for violations of the Securities and Exchange Act of 1934 Act.  These alleged violations include problems relating to the maintenance of books, records and internal account controls, the establishment of disclosure controls and procedures, and the periodic SEC filing requirements, as set forth in sections 13(a) and 13(b)(2)(A) and (B) of the Act and SEC Rules 12b-20, 13a-13, and 13a-15(a). 

Under SEC procedures, a recipient of a Wells Notice has the opportunity to respond to the SEC staff before the staff makes a formal recommendation on any action which should be brought by the SEC.  The SEC also issued Wells Notices to a former CFO and Chief Accounting Officer of the company.