New York (July 6, 2004) -- Companies that are most aggressive in booking the non-cash component of their earnings are four times as likely to be sued by their shareholders, according to a study by Criterion Research Group LLC, an independent  research firm covering corporate equities and debt.

The study, based on class action suits filed from 1996-2003, found that companies in the highest accrual category are four times more likely to be sued by shareholders than companies in the lowest accrual category. Accruals are essentially estimates of future cash flows and expenses that impact current earnings.

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