When a company restates its financial statements due to some accounting irregularity,shareholder lawsuits are often filed against the company and its management.

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Quizplus · Accepted Answer

This is true because restating financial statements due to accounting irregularity can imply that there was mismanagement or fraud, which can result in shareholders losing money. Thus, shareholders may file lawsuits against the company and its management.

When a Company Restates Its Financial Statements Due to Some