The world’s biggest corporates are ruling out
New York as a possible
listing destination due to fears of damaging securities lawsuits.
A report from
showed that of the top 15 corporate listings this year, only one company decided
to float on a New York exchange.
In 2006, non-American companies paid out $2.4bn (£1.21bn) to settle
securities lawsuits an increase of 85% on the previous year,
The Times reported.
PwC’s figures showed that despite a downturn in the number of lawsuits filed
this year, companies are frequently paying out more than $100m to settle cases.
PwC forensic services partner Andrew Gordon said that the cost of defending
class action lawsuits was prohibitively high for prospective entrants to US
‘They may have no merit but there is the cost of defending them. Then, once a
lawsuit has got over its initial hurdle not being dismissed at first hearing –
there is an incentive to settle,’ Gordon told The Times.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements