Spike in accounting fraud class actions attributed to reverse mergers

Securities class action filings involving accounting fraud allegations jumped during 2011, following one of the steepest declines in recent years, according to a report by Cornerstone Research.

The increase in number — to 70 cases, from 46 during 2010 — was accompanied by a jump in the percentage of such case to 37 percent, from 26 percent in 2010, according to the organization.

via Spike in accounting fraud class actions attributed to reverse mergers — The National Law Journal