From Yahoo Finance: 2025-04-17 11:36:00

In 2024, asset valuation and impairment were the most common GAAP errors in securities class actions, accounting for 33% of cases, up from 20% the year before. Revenue recognition violations dropped to 23% from 27%, and related party disclosures were cited in 16% of cases, with liability and contingencies valuations in 7%.

Despite a steady number of class action suits in 2024, the volume of revenue-recognition-related cases decreased. Plaintiffs filed 217 securities class actions, with 25% being accounting-related. Settlement values dropped by 25%, averaging $1.1 billion last year compared to $1.6 billion in 2023, with 91% of settlements less than $10 million.



Read more at Yahoo Finance: Valuations, impairments spark more class actions than revenue recognition