Government Enforcement and White Collar

In the wake of the recent turmoil in financial and credit markets, the SEC, Public Company Accounting Oversight Board, and DOJ have increased investigation and enforcement activities. An important focus of these matters continues to be corporate disclosures and public statements, including audited financial statements, earnings or other performance guidance, and management’s discussion of risks and trends.

Cornerstone Research has worked with attorneys and testifying experts to analyze complex accounting, auditing, and disclosure issues in civil and criminal actions brought by the SEC and other government agencies. We have conducted research, developed presentations, worked with experts to develop testimony, and consulted with clients and experts prior to and through motions, settlement discussions, and trial. Our experience includes work on multiple matters in which the claims against the defendants were dismissed, sometimes even before any public announcement of allegations or investigations.

In internal investigations we have reviewed and evaluated whether issued financial statements should be restated. For example, we evaluated whether a company’s accounting for certain transactions was in accordance with authoritative accounting standards, and we worked with attorneys to respond to conclusions reached by an independent examiner.

United States of America v. David A. Stockman et al. 

Selected Accounting Experts

Executives, companies, corporate boards, and compensation committees have faced heightened scrutiny over compensation and taxation, including stock option grant processes and valuations, adjustments to compensation due to mergers or special dividends, assessments of benchmarking and performance-based compensation, and tax shelter arrangements. Cornerstone Research’s expertise in analyzing and valuing compensation packages, securities, and companies, along with our understanding of tax accounting and regulations, has enabled us to address these issues in civil and criminal settings.

Executive Compensation

Tax Disputes

Selected Accounting Experts

Selected Corporate Governance Experts

Although the FCPA was passed more than thirty years ago, its importance to both multinational corporations and their counsel has increased in recent years. The SEC and DOJ have increased both the number and the size of actions brought under the statute, and criminal fines and the disgorgement of profits have increased dramatically. By leveraging our experience in corporate finance and accounting, as well as corporate governance process evaluation, Cornerstone Research can help corporations determine the amount of profits attributable to alleged violations of the statute and defend the reasonableness of processes designed to prevent abuses.

SEC/DOJ Investigation of FCPA Violations by a Fortune 500 Energy Firm

Selected Accounting Experts

Selected Corporate Governance Experts

Increased levels of scrutiny from government regulators and private plaintiffs have focused on the trading and marketing arms of many of the largest U.S. energy firms and have resulted in allegations of market manipulation, conspiracy, and wire fraud committed through trading strategies, the operation of physical assets, and the reporting of prices to trade publications. Cornerstone Research has worked on many of the highest-profile market manipulation investigations in the energy industry. The experience of our staff and experts in energy markets, antitrust, and finance combine to bring a multidisciplinary approach to evaluating market manipulation allegations.

Energy Transfer Partners

FERC Refund Hearings on California Electricity Markets (Duke Energy)

FERC Refund Hearings on California Electricity Markets

Other Market Manipulation Experience

Selected Energy Experts

The False Claims Act is the primary remedy employed by the government to contest healthcare reimbursement and billing practices, and the Federal Food, Drug, and Cosmetic Act is employed as the basis for criminal allegations related to alleged off-label marketing. Cornerstone Research has consulted on a variety of cases involving allegations of off-label marketing; healthcare reimbursement, including out-of-network reimbursement; prescription drug reimbursement based on Average Wholesale Prices; healthcare provider-payor disputes; and cost shifting between payors by healthcare providers. Our work typically requires knowledge of claims databases and public healthcare databases as well as advanced modeling and statistical techniques.

Average Wholesale Price Litigation

Cost Shifting

Off-Label Marketing

Reimbursement Disputes 

Selected Pharmaceuticals and Healthcare Experts

The SEC has increased its investigations and litigation on matters involving allegations against companies and their officers and directors related to disclosure misrepresentations and omissions, insider trading, market timing, and options backdating. Our experience and expertise in securities and corporate governance has enabled us to work effectively with industry and academic experts to analyze corporate processes for determining appropriate disclosures and the role of executives, board members, and outside advisors (including auditors) in the decision process.

Disclosure and Corporate Governance

Insider Trading

Market Timing

Options Backdating

Selected Securities Experts

Selected Corporate Governance Experts