Accounting Class Actions Down, Payouts Up In 2012
Professor Joseph A. Grundest is quoted in this Chicago Tribune article about the declining number of class-action lawsuits filed in 2012 and the legal system's persistent awareness of attempts of accounting fraud.
Fewer class-action lawsuits alleging accounting improprieties were filed last year in the United States, but those that were settled in 2012 carried a higher price tag, according to a study from Cornerstone Research.
As two major trends driving accounting class actions faded -- the credit crisis and Chinese issuers listing on U.S. exchanges -- new filings dropped to 45 in 2012 from 78 in 2011, said Cornerstone, which provides economic and financial consulting and expert testimony to attorneys.
Joseph Grundfest, a former SEC commissioner who now directs the Stanford Law School Securities Class Action Clearinghouse, which Cornerstone works with, said the lesson from the findings is corporate leaders should pay close attention to the numbers.
"Courts care about accounting fraud," he said.