Ongoing Goodwill Valuation and Impairment Testing Shields Professional From Liability for Misrepresentation or Fraud

Business Valuation UpdateVol. 12 No. 2
Legal and Court Case Update
February 2006

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3669 Communications Equipment, NEC
334290 Other Communications Equipment Manufacturing
securities litigation
goodwill, impairment testing, securities fraud
In re Acterna Corp. Securities Litigation
2005 U.S. Dist. LEXIS 14899
July 26, 2005
US
Federal Court
Maryland
United States District Court
PricewaterhouseCoopers LLP (for Acterna)
Chasanow

Summary

One of the issues in this securities fraud class action was whether Acterna Corp.’s (Acterna’s) outside auditor, PricewaterhouseCoopers LLP (PwC), was liable for not accurately representing the value of Acterna’s goodwill under the Financial Accounting Standards Board's (FASB's) Financial Accounting Standards No. 142 (FAS 142) and because PwC knew, or should have known, that the goodwill was seriously impaired, but reported that it was not.

See Also

In re Acterna Corp. Securities Litigation

Full Text of Court Cases
July 26, 2005

One of the issues in this securities fraud class action was whether Acterna Corp.’s (Acterna’s) outside auditor, PricewaterhouseCoopers LLP (PwC), was liable for not accurately representing the value of Acterna’s goodwill under the Financial Accounting St ...