US shareholders target foreign companies
Companies trading on the US stock exchange that originate from other nations are increasingly facing litigation from shareholders, according to a new report by PricewaterhouseCoopers.
The study by the Big Four firm shows that in the first nine months of 2004, 21 cases have been brought against non-US companies by shareholders. This is compared with just 15 cases for the whole of 2003 and looks set to beat the figure of 23 companies set in 2002.
PwC said that roughly two-thirds of the cases filed over the last two-years were accounting related, according to the Financial Times.