The case against three former executives at Nortel is coming to an end. Their actions have been characterized as a “fraud on the public” by the Canadian prosecutors during their closing statements. These managers at Nortel Networks Corporation allegedly used accounting tricks to buoy quarterly profits and activate various bonuses for themselves. Linda Nguen quotes [...]
All of the large accounting firms are experiencing litigation dealing with the issue of overtime. One such case that commenced on January 19, 2011 is Pippins, Schindler, and Lambert v. KPMG, LLP. KPMG filed several motions in this case and recently the judge denied two of them. While early, it isn’t looking good for KPMG.
Richard Bove is a bank analyst who had the audacity to tell the truth, such as predicting troubles for the bank industry at the beginning of the financial crisis. BankAtlantic did not care for the truth to be revealed to the public, so it sued him. After all, Bove had no right to disclose the [...]
On November 28 Judge Rakoff rejected a proposed settlement between the SEC and Citigroup. Pundits have applauded this rebuff, many with good reasons, but everybody is still missing the point of these civil fines. And the bad guys are free to defraud investors another day.
For several years battles have raged in several courtrooms concerning whether accounting firms have a legal obligation to pay junior accountants overtime. We are sympathetic to the position of the accounting firms, but worry about the soundness of their legal reasoning and conclusions. Do accounting firms have to be consistent in different domains? For example, [...]