Since July 2008, we've been warning about dangerous proposals from the Financial Accounting Standards Board to change its Standard No. 5, and require financial disclosures about litigation that (1) would provide roadmaps to plaintiffs' lawyers already suing publicly-traded defendants; (2) create collateral opportunities for litigation for alleged failure to meet the standard; and (3) to avoid such collateral litigation, force defensive disclosures that would depress the stock price while litigation was pending and deter meritorious defenses against litigation. Alison Frankel informs us that FASB has finally dropped the proposal. [Reuters]
FASB retreats from disastrous litigation disclosure requirement proposal
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- FASB litigation accounting VII: The prudence of delay
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- FASB litigation accounting VI
- FASB litigation accounting V
- FASB litigation accounting IV
- More on litigation exposure projections
- FASB Standard 5, cont'd
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Rafael Mangual Project Manager, Legal Policy rmangual@manhattan-institute.org |
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Communications Manhattan Institute communications@manhattan-institute.org |
Does all of this pertain to Asbestos exposure?