Aggressive Accounting Techniques More Likely to Lead to Lawsuits

Companies that hook high rates of accruals or employ other so-called "aggressive" accounting techniques are more likely to face shareholder lawsuits-even lawsuits not related to the accounting-according to a new study from Criterion Research Group LLC.

Criterion, which previously established a link in a June 2004 study between the filing of accounting-related class actions against a company and the degree to which the company included noncash components in its earnings, said the...