Secruities


SECURITIES
The number of companies sued in securities class action litigation rose 43% between 2006 and 2007, to 166 from 116, according to a report by the Stanford Law School Securities Class Action Clearinghouse and Cornerstone Research. Litigation activity for 2007 was 14% below the 10-year historical average (1997–2006) of 194 companies sued per year, but the report noted that activity jumped in the second half of 2007 as the subprime mortgage crisis unfolded and stock market price volatility increased.

One hundred companies were sued in the second half of the year, a litigation rate that reversed a trend of eight consecutive quarters with below average litigation activity. Of the filings in the second half of the year, 23 were related to subprime issues.

This year’s report for the first time tracked the outcome of cases filed in previous years. Of cases filed between 1996 and 2001, 35% were dismissed and 64% were settled. The median time from filing to settlement was 33 months. The report is available at http://securities.stanford.edu/clearinghouse_research/2007_YIR/20080103-01.pdf.

SPONSORED REPORT

6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.