Below is the first part of an article by Micheal Cohn from accountingtoday.com. It reads…
The number of accounting class-action settlements increased for the second straight year in 2013, but remained relatively low compared to the previous decade, according to a new study.
The report, from Cornerstone Research, found that in 2013, a total of 44 accounting class actions—cases involving alleged violations of generally accepted accounting principles and weaknesses in internal control over financial reporting—were settled, with an average settlement amount of $26.6 million.
In contrast, the 23 non-accounting securities class actions that were settled in 2013 had an average settlement amount of $156.7 million. While the number of securities class action filings that included accounting allegations remained relatively constant at 47 in 2013 compared with 2012, the market capitalization losses associated with the filings more than doubled.
At 28 percent of all cases, the proportion of accounting cases filed in 2013 reached a 10-year low, however. Cases are considered “accounting cases” if they involve allegations related to violations of U.S. GAAP, auditing violations or internal control weaknesses.
Advertisements