Federal Case

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting that “[w]hen pleading irregularities in revenue recognition, plaintiffs should allege ... such basic details as the approximate amount by which revenues and earnings were overstated ... ”
• noting that under GAAP “revenue must be earned before it is ree-ognized”
• finding scienter where top executives directed improper recognition before projects were completed “without regard to any actual percentage of completion”
• violating GAAP by overstating revenues may state a claim for securities fraud (accounting fraud)
• allegations must be sufficient for court to “discern whether the alleged GAAP violations were minor or technical in nature, or whether they constituted widespread and significant inflation of revenue”
• complaint described con- fidential witnesses “with sufficient particularity to support the probability” that they knew about the fraud

Source: CourtListener parenthetical corpus (CC0).