(1) The number of accounting filings fell from 78 in 2011 to 45 in 2012. Two factors that contributed to this decline were the overall decrease in filings and the specific decrease in Chinese reverse merger cases (which frequently include accounting allegations).
(2) The proportion of accounting filings involving restatements (36%) and internal control weaknesses (67%) remained relatively constant.
(3) Accounting cases are less likely to be dismissed and more likely to settle than non-accounting cases. In 2012, accounting cases were less than 70% of the settled cases, but represented more than 90% of the total value of settlements.Posted by Lyle Roberts at April 26, 2013 3:19 PM | TrackBack