A federal appeals court has upheld the dismissal of a lawsuit against Merck even though the drugmaker had been "treading a fine line".
In June 2001, Merck's share price fell after The Wall Street Journal reported that its subsidiary Medco Health Solutions Inc. had overstated revenues by more than $4.6 billion. Not surprisingly, investors later sued the company for concealing the accounting scandal.
The judge ruled that the drugmaker was "treading a fine line" by failing to disclose the details of accounting problems, but said that analysts and investors should have been able to do the math.
http://www.cfo.com/article.cfm/5332750/c_5327347?f=home_todayinfinance
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