Cornerstone Releases Review of 2018 Accounting Class Action Filings and Settlements

On April 17, 2019, Cornerstone Research issued a report analyzing accounting class action filings and settlements. According to the report, there were 143 securities class actions involving accounting allegations during 2018 (down 13% from 2017, but still 86% higher than the historical average), including 79 M&A-related cases alleging failure to reconcile a non-GAAP measure to a GAAP measure. Additionally, while the number of accounting case settlements declined 16% in 2018 (from 49 to 41), total settlement value increased by more than five times to almost $4.5 billion (compared to $883 million in 2017), largely due to a handful of large settlements. The full report is available here.