Financial Restatements Increase In 2006

Law360, New York (March 6, 2007, 12:00 AM EST) -- Stock options backdating breathed new life into financial restatements in 2006, which declined for larger companies and increased for smaller companies, according to a new report by research firm Glass Lewis & Co.

The paper, “The Errors of Their Ways,” found that companies with U.S.-listed securities filed 1,538 financial restatements in 2006, up 13% from the previous year. About one out of every 10 public companies filed a restatement last year, compared with one for every 12 in 2005.

The report's perhaps most provocative item is...
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