Helping Investors Pursue Claims for Negligence and Fraud
When a company issues an earning restatement, it is essentially admitting that it has previously released inaccurate information about its financial position. Earnings restatements have become increasingly common in recent years — particularly after the exposure of irregularities at major companies such as Enron and WorldCom — and in most cases, after a company restates its earnings, its stock price declines, sometimes substantially.
If your investments have lost value as a result of an earnings restatement, you may have legal recourse against the company, its directors and officers, its accounting firm, and any brokers involved in promoting its securities. At the law firm of Schachter Harris, LLP, our Texas securities litigation lawyers help investors nationwide pursue fair compensation for their losses.
Identifying Options for Clients Who Have Lost Investment Value
Earnings restatements impact stock prices for two main reasons. First, in most cases, either earnings are revised downward or other information is provided that casts a less positive light on the company´s finances. Second, the fact that earnings have been restated has a negative impact on investors´ confidence in the information they are receiving from the company.
An earnings restatement may indicate that a company has discovered an unintentional accounting error, but it may also indicate that securities fraud has been committed.
In either case, investors whose shares have lost value may be entitled to compensation. Our attorneys have the experience and financial knowledge to help investors identify and pursue litigation options in light of earnings restatements. To discuss how we can assist you with your case, please contact us to schedule a consultation.
