In this Rule 10b-5 securities suit brought against AST Research, a leading PC manufacturer, the plaintiffs alleged that AST’s management had manipulated various aspects of the accounting treatment of its acquisition of Tandy Corporation to inflate the stock price.
Retained by O’Melveny & Myers
In this Rule 10b-5 securities suit brought against AST Research, a leading PC manufacturer, the plaintiffs alleged that AST’s management had manipulated various aspects of the accounting treatment of its acquisition of Tandy Corporation (inventory valuations, treatment of goodwill, and creation and use of reserves) to inflate the stock price.
Defense counsel retained Cornerstone Research to assist Purdue University professor John McConnell in evaluating the plaintiffs’ expert’s damages calculation and in preparing an alternative damages assessment. We uncovered a number of errors and unreasonable assumptions in the plaintiffs’ analysis that counsel used as the basis for cross-examination of the plaintiffs’ expert. The case settled during this cross-examination.