Compliance Stuff

ACCOUNTING ALLEGATIONS Based on the cases settled in 2025, GAAP violations are more likely to be added to non-accounting case filings than removed from accounting case filings. Approximately 54% of accounting case settlements included allegations of GAAP violations that were not made in the first identified complaint (FIC), whereas only 9% of settled cases had allegations of GAAP violations in the FIC that were later removed prior to settlement. For the second consecutive year, the most common GAAP violation alleged in accounting case filings was asset valuation and/or impairment. Although the number of accounting case settlements with alleged GAAP violations in 2025 was generally consistent with 2024, the median value of such settlements increased by 67%. Similar to accounting case filings, the most common alleged GAAP violation in accounting case settlements was asset valuation and/or impairment. When asset valuation and/or impairment violations (a subset of GAAP violations) are alle...

At a Glance 2026 may include an extra pay cycle for employers that pay biweekly. Now is the time for employers to examine their payroll practices and plan accordingly. Employers that pay their employees on a biweekly pay cycle often determine the amount of an employee’s biweekly salary by dividing their designated annual salary by 26, reasoning that there will be 26 pay cycles in a 52-week year. Makes sense, right? Not so fast! Once every 11 or 12 years, employers that pay biweekly will be faced with an unexpected payroll budget surprise – a 27th payday. For many employers, 2026 will be that year. How should an employer manage this unexpected payroll obligation? The Story of Acme, Inc. and Jane Doe To understand this issue fully, let us consider the example of Acme, Inc., which pays its employees on a biweekly basis. Acme’s designated workweek is Sunday through Saturday, and payday is the Friday following the end of each biweekly pay period. Acme pays Jane Doe an annual salary of $52,0...