Counsel for a major firm involved in a securities class action retained Cornerstone Research to support two experts who addressed accounting issues and materiality.
Retained by Jones Day
Counsel for a major firm involved in a securities class action retained Cornerstone Research to support two experts: Professor J. Richard Dietrich of The Ohio State University, who addressed accounting issues, and an expert who addressed materiality. The accounting issues arose partly because the firm’s financial statements were restated to delay recognition of a litigation settlement and because the firm changed its accounting approach for cash discounts from manufacturers. To assess the company’s decision to delay recognition of the settlement, Professor Dietrich reviewed authoritative guidelines on gain contingencies. He also explained the two acceptable accounting methods for recognizing cash discounts, and argued that the firm’s change in accounting involved moving from one method to the other. The case settled.