Dana Execs Lose Bid To Toss Accounting Fraud Action

Law360, New York (April 1, 2011, 9:25 PM EDT) -- An Ohio federal judge on Thursday refused to toss a class action accusing executives of auto parts maker Dana Corp. of accounting fraud in connection with a 2005 restatement.

The plaintiffs, institutional investors who owned Dana stock, have adequately made a case that four company executives deliberately fudged their revenue numbers to save their jobs, Judge James G. Carr of the U.S. District Court for the Northern District of Ohio said.

“To be sure, accounting violations themselves to do not show scienter,” Judge Carr said. “But...
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