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To: Frank_Ching who wrote (8964)	7/27/2000 1:03:31 AM
From: Sir Auric Goldfinger	Read Replies (6) of 10354

ACCOUNTING ISSUES take the lead in securities-fraud class-action suits. The number of securities-fraud lawsuits filed in federal court fell 14% in 1999, reversing a three-year trend, says a study by PricewaterhouseCoopers, New York. But more than half of the 205 suits filed involved alleged violations of Generally Accepted Accounting Principles. The firm says it was the first time accounting outpaced other types of alleged fraud since the 1995 Private Securities Litigation Reform Act, which made it more difficult to prove a class-action claim. But plaintiffs may be finding ways to mine the act's "safe harbor." In the old days, suits were often based on profit projections that didn't pan out. But firms now get some shelter from the act when making forward-looking statements. So, plaintiffs increasingly are challenging reported earnings as having been doctored, says Harvey Kelly, a PricewaterhouseCoopers partner. Day-trading may sharpen the trend as unhappy traders who bought high and sold low fish for accounting errors to blame. Last year, nearly 10% of the 108 suits that alleged accounting fraud focused on a single quarter. interactive.wsj.com

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