Court Rejects Market Cap ‘Bright Line Rule’ Regarding Goodwill Impairment Testing

Business Valuation UpdateVol. 16 No. 7
Legal and Court Case Update
July 2010

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4833 Television Broadcasting Stations
515120 Television Broadcasting
securities litigation
City of Omaha, NE Civilian Employees’ Retirement System v. CBS Corp.
2010 WL 1029290 (S.D.N.Y)
March 16, 2010
US
Federal Court
Federal
United States District Court
Castel

Summary

A company’s book value exceeding its market capitalization is not a “bright line” test for triggering goodwill impairment, and the court dismissed claims for securities fraud for failing to state a more precise triggering event.

See Also

City of Omaha, NE Civilian Employees’ Retirement System v. CBS Corp.

Full Text of Court Cases
March 16, 2010

A company’s book value exceeding its market capitalization is not a “bright line” test for triggering goodwill impairment, and the court dismissed claims for securities fraud for failing to state a more precise triggering event.