Evidence
GCs Fear Litigation Strategies Would Be Revealed if Rule Changes
Posted 12 hours, 16 minutes ago
By Debra Cassens Weiss
The ABA is among the critics of a proposed accounting rule change that would require public companies to disclose more details about the risks of litigation.
In-house lawyers and other critics say the rule change would force companies to reveal details that could provide opponents with a preview of their litigation strategies, the Recorder reports. The ABA is particularly concerned the rule would result in waiver of the attorney-client privilege.
The proposed changes (PDF posted by the Recorder) by the Financial Accounting Standards Board would lower the threshold for reporting a potential loss from a lawsuit from “probable” to anything more than “remote,” the story says. Companies would be required to estimate legal costs and… Continue reading...
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