Brattle Principal Bin Zhou and Associate Adrienna Huffman have coauthored a Law360 article that uses the Great Recession as a lens through which to examine the types of securities litigation that may arise because of goodwill impairments recognized following the COVID-19 pandemic and the related market downturn.
In the article, “Securities Litigation Implications of COVID-19 Impairments,” the authors note that there will likely be an uptick in goodwill impairments as the pandemic continues to affect the global economy. Based on the aftermath of the Great Recession, market-driven impairments are unlikely to yield successful plaintiff claims, especially if other companies in the same industry are impairing goodwill. However, if plaintiffs can show that a company intentionally delayed or hid the recognition of a goodwill impairment, for example, to protect senior management’s personal or financial circumstances, they might have more success.
The full article, “Securities Litigation Implications of COVID-19 Impairments,” is available below.