Spike in accounting fraud class action lawsuits

FRT Admin
Site administrator
April 10, 2015

The number of securities class action filings involving accounting fraud spiked 47% in 2014, according to a recent Cornerstone Research report. A main reason for the uptick is attributeSpike In Accounting Fraudd to an increased focus by the Securities and Exchange Commission on accounting fraud enforcement cases. This is the first time since 2007 that we have seen an increase in SEC accounting cases resulting from misconduct related to the financial crisis. 69 of the 170 securities class actions filed in 2014 involved accounting allegations.  Despite the fact that there was a major jump in accounting related class actions, there was hardly a change of overall securities class action filings from 2013.

Based on the heightened focus from the SEC cracking down on accounting fraud, it will be interesting to see future impact of accounting fraud cases on the total number of securities class action filings.

Do you think this trend will continue for the upcoming years?  Read more here.

 

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Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.