On May 15, Corporate and Securities partner Alan Gaynor was quoted in the Financial Times’ AgendaWeek article, “Companies With the Highest Legal Bills.” The article discusses how companies often do not disclose litigation costs or other fees and expenses paid to lawyers unless they are material. Alan explained that historically company insiders used a five percent rule of thumb of, for instance, revenues, or total assets or income to gauge whether a litigation was material. Alan explained that in 1999, the SEC issued an accounting bulletin that ended simple quantitative rules of thumb and added qualitative factors such as whether an item would cause the company to swing to a loss. Read the complete article (subscription required).
|Gaynor, Alan S. Partner||Partner||212.216.1136|