New Wave of Securities Class Action Lawsuits on the Way?
The Boston Business Journal has this article related to the recent Stanford/Cornerstone report, as well as SLW's recent posts about the subject. The article states that:
The number of securities class action lawsuits filed in the United States fell off last year, but experts say it's not time for companies to relax yet because a rising number of corporate restatements could harbinger a new wave of such suits.
Quoting yours truly, the article adds:
But rising earnings restatements foreshadow future lawsuits, said Bruce Carton, vice president of securities class action services at Institutional Shareholder Services Inc. of Rockville, Md.
"The fact that you're getting a flurry of restatement of 2005, if it hasn't already led to lawsuits, probably will in the future," Carton said.
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"SOX fuels restatements, which fuels lawsuits," Carton said.
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