Michelle Reed, Jessica Greenwood Article on SEC Interest in Accounting Fraud Published by Securities Litigation & Regulation
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Westlaw Journal’s Securities Litigation & Regulation has published “The Rise of the Stealth Restatement: Securities Litigation Accounting Fraud Trends” by Akin Gump litigation partner Michelle Reed and associate Jessica Greenwood.
The article discusses the Securities and Exchange Commission’s renewed interest in pursuing accounting fraud, “including establishing the Financial Reporting and Audit Task Force and implementing new data-mining software to detect accounting irregularity,” and notes that the SEC’s focus “will likely prompt class-action plaintiffs and the courts, among others, to pay greater attention to corporate restatements, which frequently lead to allegations of accounting irregularities.” The authors examine historic trends in corporate restatements and securities litigation alleging accounting fraud and suggest future trends.
The full article can be read here.
