Zwerling, Schachter & Zwerling, LLP Announces Filing of an Expanded Class Period for The Securities Class Action

23 October 2005

Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") has filed a class action lawsuit in the United States District Court for the Northern District of Ohio on behalf of all persons and entities who purchased or otherwise acquired the publicly traded common stock of Dana Corporation ("Dana" or the "Company") (NYSE: DCN - News) during the period from February 11, 2004 through October 10, 2005 (the "Class Period"). The deadline to move the Court seeking to be appointed lead plaintiff is December 5, 2005.

If you wish to discuss this securities action or have any questions concerning your rights and interests with respect to this litigation matter, please contact Zwerling Schachter (Shaye J. Fuchs, Esq. or Jayne Nykolyn) at 1-800-721-3900 or by e-mail at sfuchs@zsz.com or jnykolyn@zsz.com.

The complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Defendants' Class Period representations regarding Dana's historical financial performance and its expected 2004 and 2005 earnings were materially false and misleading because: (a) the Company had improperly accounted for price increases and improperly accounted for certain items involving customer pricing transactions with suppliers in its commercial vehicle business which artificially inflated revenue and earnings for the full year 2004 and the first two quarters of 2005; (b) the Company's apparent financial success was the result of improper accounting and material weaknesses in its internal controls, which did not reflect the true nature of its business; and (c) contrary to defendants' repeated assurances, defendants' earnings guidance was not based on any reasonable assessment of the Company's business and was only achievable through the manipulation of the Company's financial statements.

On September 15, 2005, before the market opened, Dana announced that it would likely restate its second quarter 2005 financial results and that it had dramatically lowered its 2005 earnings guidance, to $0.60 to $0.70 per share from $1.30 to $1.45 per share. In addition, the Company cited higher steel costs as a factor in the significantly reduced guidance, a factor that defendants repeatedly assured investors was already considered, and accounted for, in the guidance. Dana stock fell dramatically, from $12.78 per share on September 14, 2005 to $9.86 per share on September 15, 2005.

On October 10, 2005, Dana further announced that it would restate its earnings for its entire fiscal year 2004 and for the first two quarters of 2005. Dana also withdrew its profit forecast for 2005. On that news, Dana stock fell $3.15 or 34 percent to close at $6.04 a share.

If you purchased the publicly traded common stock of Dana during the period of February 11, 2004 through October 10, 2005, you may apply to serve as lead plaintiff. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.

Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities, antitrust and complex commercial litigations pending in federal and state courts and has offices in New York City, Garden City, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.

Source: PR Newswire

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