Cornerstone Research

PCAOB Enforcement Activity in 2023 Reached its Highest Level Since 2017 as Monetary Penalties Nearly Doubled Previous Record

Retrieved on: 
Wednesday, April 10, 2024
Research, Ethics, PCAOB, Quality control, Cornerstone Research, Disclosure, Audit

LOS ANGELES, April 10, 2024 /PRNewswire-PRWeb/ -- The Public Company Accounting Oversight Board (PCAOB) expanded its enforcement activity to the highest level since 2017, according to a new report released today by Cornerstone Research. Monetary penalties imposed by the PCAOB nearly doubled compared to the record set in 2022.

Key Points: 
  • Monetary penalties imposed by the PCAOB nearly doubled compared to the record set in 2022.
  • Twenty-nine of the 37 auditing actions were concluded in the second half of 2023, matching the total number of auditing actions for 2022.
  • Monetary penalties totaled $19.7 million, nearly doubling the previous record of approximately $10.5 million in 2022.
  • Nearly 80% of the total monetary penalties in 2023 were assessed on just six defendants.

Number of Accounting-Related Securities Class Action Filings Rose in 2023 Despite Increase in Filing Lag to 10-Year High

Retrieved on: 
Wednesday, April 3, 2024
GAAP, Cornerstone Research, Research, Accounting, DDL, Growth, Finance, Motion, Pharmaceutical industry

LOS ANGELES, April 3, 2024 /PRNewswire-PRWeb/ -- A new report released today by Cornerstone Research shows an increase of nearly 10% in the number of securities class action filings involving accounting allegations in 2023 compared to 2022. This growth occurred even though cases took longer to be filed, with the median filing lag reaching 43 days, the longest in a decade. The report, Accounting Class Action Filings and Settlements—2023 Review and Analysis, also found that the total value of settlements increased 11% year-over-year despite a decrease in the number of settlements.

Key Points: 
  • The report, Accounting Class Action Filings and Settlements—2023 Review and Analysis , also found that the total value of settlements increased 11% year-over-year despite a decrease in the number of settlements.
  • The number of accounting-related securities class action filings grew to 56 in 2023.
  • This was the second largest for accounting cases in the last 10 years and came amidst a 44% decline in total DDL for all federal securities class action filings in 2023.
  • The total value of accounting-related securities class action settlements increased slightly from $1.4 billion in 2022 to $1.6 billion in 2023.

Number of Securities Class Action Settlements Falls as Median Settlement Amount Reaches Highest Level Since 2010

Retrieved on: 
Wednesday, March 6, 2024
Security (finance), Growth, Hearing, COVID-19, Cornerstone Research, Pharmaceutical industry

WASHINGTON, March 6, 2024 /PRNewswire-PRWeb/ -- The number of securities class action settlements declined 21% relative to 2022, following the 15-year high set in 2022, according to a new report released today by Cornerstone Research. Despite the decline in settlement activity, the median settlement amount, median "simplified tiered damages," and median assets of issuer defendants remained historically elevated.

Key Points: 
  • Despite the decline in settlement activity, the median settlement amount, median "simplified tiered damages," and median assets of issuer defendants remained historically elevated.
  • The report, Securities Class Action Settlements—2023 Review and Analysis , found that the number of securities class action settlements in 2023 fell to 83, a 21% decline compared to 105 settlements in 2022.
  • The median settlement amount of $15.0 million marked the highest level since 2010, representing an 11% increase from 2022.
  • In addition to the median settlement value reaching its highest level since 2010, the average settlement amount in 2023 was $47.3 million, a 25% increase from 2022.

Spike in Fourth Quarter SEC Accounting and Auditing Enforcement Activity Results in Notable Increase in FY 2023

Retrieved on: 
Wednesday, February 28, 2024
Sarbanes–Oxley Act, FY, Initiative, EPS, Cornerstone Research, Earnings per share, Bank statement, Accounting, Pharmaceutical industry

WASHINGTON, Feb. 28, 2024 /PRNewswire-PRWeb/ -- The U.S. Securities and Exchange Commission expanded its accounting and auditing enforcement activity in fiscal year 2023, while monetary settlements dropped for the second consecutive year, according to a new report released today by Cornerstone Research.

Key Points: 
  • The report, SEC Accounting and Auditing Enforcement Activity—Year in Review: FY 2023 , found that the SEC publicly disclosed 83 accounting and auditing enforcement actions in FY 2023, a 22% increase from FY 2022 and the highest number of actions initiated since FY 2019.
  • FY 2023 was the first time that civil penalties comprised less than half of total monetary settlements since FY 2020.
  • There were 111 total respondents in accounting and auditing enforcement actions initiated in FY 2023, a slight increase from the 103 respondents in FY 2022.
  • In FY 2023, the SEC initiated 11 actions against non-U.S. respondents, higher than the average of nine actions per year from FY 2018 to FY 2022.

Rashid Muhamedrahimov Joins Cornerstone Research as Director of Applied Research Center

Retrieved on: 
Thursday, February 22, 2024
Hostile witness, Economics, University, Research, Cornerstone Research, Data science

LONDON, Feb. 22, 2024 /PRNewswire-PRWeb/ -- Cornerstone Research, a leading provider of economic and financial consulting and expert testimony, announced today that Rashid Muhamedrahimov has joined the firm to lead its Applied Research Center. The Center's highly specialized team of experts collaborates with case teams to support clients with creative ideas and sophisticated approaches drawn from multiple subject areas and technical disciplines. The Center complements the quality and rigor of Cornerstone Research's work by conducting novel research, developing new tools, and promoting thought leadership on specific and challenging issues.

Key Points: 
  • LONDON, Feb. 22, 2024 /PRNewswire-PRWeb/ -- Cornerstone Research, a leading provider of economic and financial consulting and expert testimony, announced today that Rashid Muhamedrahimov has joined the firm to lead its Applied Research Center .
  • The Center complements the quality and rigor of Cornerstone Research's work by conducting novel research, developing new tools, and promoting thought leadership on specific and challenging issues.
  • "I am honored to join Cornerstone Research as the firm launches its Applied Research Center and continues to be at the forefront of solving client problems in innovative ways," Mr. Muhamedrahimov said.
  • Before joining Cornerstone Research, Mr. Muhamedrahimov was the head of data science at an international consulting firm.

Cornerstone Research Receives Top Score in Human Rights Campaign Foundation's Corporate Equality Index

Retrieved on: 
Thursday, February 8, 2024
The American Lawyer, Queer, SAN, Human Rights Campaign, Cornerstone Research, HRC, CEI, Equality, Corporate Equality Index, Research, Management

SAN FRANCISCO, Feb. 8, 2024 /PRNewswire-PRWeb/ -- Cornerstone Research, a leading provider of economic and financial consulting and expert testimony, is pleased to announce that it has received the Equality 100 Award from the Human Rights Campaign (HRC) Foundation's Corporate Equality Index (CEI). The firm earned a score of 100, the highest score possible. HRC-CEI is the nation's foremost benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.

Key Points: 
  • SAN FRANCISCO, Feb. 8, 2024 /PRNewswire-PRWeb/ -- Cornerstone Research, a leading provider of economic and financial consulting and expert testimony, is pleased to announce that it has received the Equality 100 Award from the Human Rights Campaign (HRC) Foundation's Corporate Equality Index (CEI) .
  • Cornerstone Research is one of only 592 U.S. businesses recognized this year with the Equality 100 Award .
  • "We are proud to be recognized for our commitment to LGBTQ+ equality," said Yesim Richardson , president of Cornerstone Research.
  • The Human Rights Campaign Foundation's Corporate Equality Index is a primary driving force for LGBTQ+ workplace inclusion and serves as the national benchmarking tool measuring policies, practices, and benefits pertinent to lesbian, gay, bisexual, transgender, and queer (LGBTQ+) employees.

Securities Class Action Filing Activity Increased Slightly in 2023, Reversing Recent Years' Declines

Retrieved on: 
Wednesday, January 31, 2024
Crypto, FTX, COVID-19, Security (finance), Cornerstone Research, Stanford Law School, MDL, DDL, Cryptocurrency

MENLO PARK, Calif., Jan. 31, 2024 /PRNewswire-PRWeb/ -- The number of securities class action lawsuits increased slightly in 2023, reversing the trend of decline over the last three consecutive years, according to a report released today by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.

Key Points: 
  • MENLO PARK, Calif., Jan. 31, 2024 /PRNewswire-PRWeb/ -- The number of securities class action lawsuits increased slightly in 2023, reversing the trend of decline over the last three consecutive years, according to a report released today by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse .
  • The report, Securities Class Action Filings—2023 Year in Review , found that plaintiffs filed 215 securities class action lawsuits in federal and state courts in 2023, up slightly from 208 filings in 2022.
  • The number of "core" filings—those excluding M&A filings—also increased slightly from the previous year.
  • Conversely, the aggregate filing size as measured by Maximum Dollar Loss (MDL) increased to $3.2 trillion, the second-highest amount on record.

SEC Enforcement of Cryptocurrency Reaches a New High in 2023

Retrieved on: 
Wednesday, January 24, 2024
Bitcoin, Cornerstone Research, NFT, Fraud, Database, Supreme court, Icos, Fintech, Security (finance), Non-fungible token, Cryptocurrency

WASHINGTON, Jan. 24, 2024 /PRNewswire-PRWeb/ -- The Securities and Exchange Commission (SEC) continues to view cryptocurrency-related enforcement as a top priority, bringing 46 enforcement actions against various digital-asset market participants in 2023, according to a Cornerstone Research report released today. This number is the highest since 2013 and a 53% increase from 2022. In the first quarter of 2023 alone, the SEC brought 20 actions, the highest number in a single quarter.

Key Points: 
  • The report, SEC Cryptocurrency Enforcement: 2023 Update , found that, of the 46 enforcement actions, the SEC brought 26 litigations in U.S. federal courts and 20 administrative proceedings in 2023.
  • According to the report, the SEC charged 124 defendants or respondents in cryptocurrency enforcement actions in 2023.
  • In 2023, outside organizations, especially state agencies, continued to assist the SEC in bringing cryptocurrency enforcement actions.
  • Cornerstone Research's Cryptocurrency Enforcement Database contains cryptocurrency-related enforcement actions brought by the SEC between January 1, 2013, and December 31, 2023.

Renowned DOJ Economist Dr. Ari Gerstle Joins Cornerstone Research as Senior Advisor and Expert

Retrieved on: 
Monday, January 22, 2024
Assistant, Food, Cornerstone Research, Insurance, Hostile witness, Economics, DOJ, Cornell University, Doctor of Philosophy, Research, Justice, Management

WASHINGTON, Jan. 22, 2024 /PRNewswire-PRWeb/ -- Cornerstone Research, a leading provider of economic and financial consulting and expert testimony, announced today that Dr. Ari Gerstle, former Assistant Chief of the Economic Regulatory Section in the Department of Justice's (DOJ) Antitrust Division, has joined the firm as a senior advisor and expert based in the Washington, DC, office.

Key Points: 
  • Dr. Gerstle served as Staff Economist in the Economic Analysis Group within the Department of Justice for 15 years before being named Assistant Chief in 2020.
  • As Assistant Chief, Dr. Gerstle helped direct a group of 45 Ph.D. economists, financial analysts, statisticians, and research assistants.
  • "In my merger work at the Department of Justice, I was always impressed with the work that the team at Cornerstone Research produced," noted Dr. Gerstle.
  • As an economist at the DOJ, Dr. Gerstle worked as a part of larger litigation teams and as the sole economist on smaller investigations.

SEC Enforcement Actions Against Public Companies and Subsidiaries Jump in FY 2023

Retrieved on: 
Wednesday, November 15, 2023
Guilt, Disclosure, Law, Investment, Data, Supreme court, University School, Investment company, Business, FY, Cornerstone Research, Cryptocurrency, Pharmaceutical industry, SEED

NEW YORK, Nov. 15, 2023 /PRNewswire-PRWeb/ -- The U.S. Securities and Exchange Commission (SEC) filed 91 enforcement actions against public companies and subsidiaries in fiscal year 2023, a 34% increase over FY 2022, according to a report released today by the NYU Pollack Center for Law & Business and Cornerstone Research. That increase contrasted with monetary settlements in public company and subsidiary actions, which decreased to $1.3 billion, the lowest total in the last eight fiscal years. This was down more than 50% year-over-year, and 30% lower than the average annual total monetary settlement amount from FY 2014 through FY 2022.

Key Points: 
  • NEW YORK, Nov. 15, 2023 /PRNewswire-PRWeb/ -- The U.S. Securities and Exchange Commission (SEC) filed 91 enforcement actions against public companies and subsidiaries in fiscal year 2023, a 34% increase over FY 2022, according to a report released today by the NYU Pollack Center for Law & Business and Cornerstone Research .
  • The report, SEC Enforcement Activity: Public Companies and Subsidiaries—Fiscal Year 2023 Update , analyzes information from the Securities Enforcement Empirical Database (SEED) .
  • "Nearly 70% of public companies and subsidiaries that settled in FY 2023 cooperated with the SEC.
  • In FY 2023, 16 defendants had an admission of guilt, tied with FY 2022 for the highest total in SEED.