The number of class-action accounting-fraud cases filed last year fell sharply compared with the year before, but settlements in such cases still accounted for a significant amount of money, Cornerstone Research says in a report. One of the reasons cited for the drop was a decline in the number of Chinese reverse-merger cases. "Reverse-merger cases themselves accounted for two-thirds of the drop we saw in accounting-fraud cases," said Elaine Harwood, vice president of Cornerstone Research.

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