Stay current on changes and developments in corporate law with a wide variety of resources and tools.
April 29 --Although the number of accounting class action filings in 2013 remained “relatively constant at 47,” the number of accounting case settlements in 2013 increased for the second year in a row to 44--albeit still relatively low compared with the 10-year historical average--according to an April 29 report by Cornerstone Research.
Further, “in a reversal of the typical pattern,” settlement amounts in accounting cases were lower than for non-accounting cases in 2013, according to Cornerstone's Accounting Class Action Filings and Settlements--2013 Review and Analysis.
The report noted that the low number of accounting case filings is “consistent” with overall trends in securities class action filing activity. Further, “at 28 percent of all cases filed,” it said, “the proportion of accounting cases” was at a 10-year low.
In terms of settlement amounts, unlike prior years in which accounting cases represented as much as 97 percent of the value of case settlements, in 2013, accounting cases represented only 25 percent of the total value of settled cases. However, the study noted that “this unusual result was due to the presence of one non-accounting case that comprised more than 50 percent of the total value of cases settled” and therefore, “this change is not expected to indicate a future trend.”
With regard to industries, the report said that in 2013, accounting class actions were “more evenly distributed across industry sectors” with no single industry sector accounting for a majority of case filings. However, the financial sector comprised the largest portion of accounting case settlement dollars--representing nearly 70 percent of the total settlement amount.
In terms of claims, the report said that 40 percent of accounting class actions involved restatements in 2013--higher than any of the previous five years. Similarly, the proportion of filings involving internal control weakness allegations was at a five-year high. Further, “auditors were named as defendants in 12 out of 44 accounting cases that settled in 2013,” the report said.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)