Bala Cynwyd, Pa. (Aug. 22, 2002) -- Shareholders filed a class action lawsuit this week against Aon Corp., the parent company of the administrator of the American Institute of CPAs' professional liability insurance program.The suit charges that Aon issued a series of "material misrepresentations to the market" between 1999 and 2002, which artificially inflated the company’s stock price. The complaint said the company overstated income by $27 million in 1999, by $24 million in 2000, and by $5 million in the first quarter of 2002, and lacked good internal controls.
Earlier this month, Aon acknowledged that the Securities and Exchange Commission is probing the company over possible accounting irregularities.
While the company said its reporting conformed to Generally Accepted Accounting Principals, based on the SEC talks, it concluded that "certain non-cash other than temporary losses should have been recorded in prior periods."
Those wishing to learn more about the lawsuit can visit the Web site of the plaintiffs’ attorney at http://members.aol.com/mhenzel182.
-- Electronic Accountant Newswire staff
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access