The Jumpstart Our Business Startups Act might increase securities class-action lawsuits regarding accounting, according to a report by Cornerstone Research. Such suits totaled 45 last year, compared with 78 in 2011. However, the JOBS Act exempts companies with less than $1 billion in annual revenue from having an auditor attest to the effectiveness of internal controls; that might "lead to increased litigation involving emerging growth companies in the future," the report says.

Related Summaries