Linked to 59 companies since Jan 2009. A filing names it for 97% of those. The rest come from a text search, which also finds a firm on the other side of a deal.
These figures describe clients, not conduct. A lawyer or firm can serve many companies that later had trouble for reasons that have nothing to do with their work, and nothing here says any lawyer or firm did anything wrong.
At a glance
5 of these companies later showed signs of SEC or DOJ scrutiny and had another red flag. Comparable companies would show 3.5, so that is 1.42× what you would expect.
SEC or DOJ scrutiny and another red flag
1.42×
5 companies, 3.5 expected, q 0.963
SEC or DOJ scrutiny
2.18×
15 companies, 6.9 expected, q 0.164
Stopped filing, and the SEC acted
3.06×
23 companies, 7.5 expected, q <0.001
Shares fell 95% from their high
1.02×
9 companies, 8.8 expected, q 1.000
Each bar’s tick marks 1×, no more than comparable companies. A colored bar has q below 0.05, the usual bar.
The SEC or DOJ took an interest, and the company also fell 95%, restated its accounts, restructured or went bankrupt.
SEC or DOJ scrutiny
An enforcement release; a Wells notice, a formal order, a subpoena or a statement that it is cooperating with the SEC or Justice Department in the company's own filings; or far more SEC letters than a company normally draws. Whether or not the company was ever charged: most cases settle, or end in nothing public.
Stopped filing, and the SEC acted
The SEC revoked the company's registration, or suspended trading, for nothing but not filing.
Shares fell 95% from their high
A close at least 95% below the earlier high, with no close above a fifth of that high in the next ten, so that one bad print does not count. It can recover later.
Two or more different red flags
Any two of: SEC or DOJ scrutiny, a 95% fall, a restatement, a restructuring, a bankruptcy.
Said its accounts could not be relied on
The company's own Item 4.02 notice on Form 8-K.
Bankruptcy or receivership
The company's Item 1.03 notice on Form 8-K. This follows how much debt clients carry, so restructuring practices read high here.
Restructuring or accelerated debt
Item 2.05 or Item 2.04 on Form 8-K.
Delisting notice
Item 3.01 on Form 8-K. Mergers and transfers between exchanges report under it too, so it is shown but counts as no red flag.
SEC accounting enforcement release
An Accounting and Auditing Enforcement Release that names the company.
An SEC release or DOJ statement names it, an officer or its stock
The text of a release or a DOJ statement names the company, one of its officers, or its stock as what a scheme sold or moved. It does not say the company did wrong: a company can be the victim. This is about the company, never its lawyers.
