Compliance
A Cornerstone Research report indicates that accounting-related securities class action filings dropped to 34 cases in 2025, the lowest in over twenty years; total settlements reached approximately $1.5 billion, up 40% year-over-year, with a median settlement of $17.1 million, the highest since 2022. The average case settlement duration extended to 4.1 years, the longest in a decade.
FASB voted on Wednesday (March 25) not to amend the current generally accepted accounting principles (GAAP) guidance regarding settlement payments received by airlines from aircraft manufacturers. The decision was made after staff did not recommend adding the project, with some board members expressing dissenting views.
The U.S. Federal Trade Commission (FTC) announced on Tuesday a settlement with artificial intelligence startup Air AI and its owners, prohibiting them from marketing or selling business opportunities. The FTC accused the company of misleading entrepreneurs and small businesses through false growth promises, profit expectations, and refund guarantees, defrauding approximately $19 million in total. The settlement order includes an $18 million fine, but most of it was suspended due to inability to pay, with an actual payment of $50,000 for consumer relief.
The Financial Accounting Standards Board (FASB) on Wednesday rejected a potential revision project related to standards for preparing personal financial statements. The request was made in 2022 by Brooklyn College professor Daniel Tinkelman, stemming from differences in interpretation of the standards exposed in the Trump civil fraud case. FASB staff stated that most stakeholders considered the issue to be of low priority and that existing guidance already provides solutions. Tinkelman expressed disappointment with the decision.
The Financial Accounting Standards Board (FASB) total accounting support fee for 2026 decreased 11% from 2025, to approximately $29.2 million (based on $32.8 million in 2025). The Governmental Accounting Standards Board (GASB) accounting support fee decreased 9% year-over-year. Fee invoices will be mailed in late April or early May.
The U.S. Attorney's Office for the Southern District of New York announced Thursday that Supermicro co-founder Yih-Shyan "Wally" Liaw, Taiwan sales manager Ruei-Tsang "Steven" Chang, and contractor Ting-Wei "Willy" Sun were indicted for allegedly covertly shipping servers equipped with cutting-edge American AI technology to China. Supermicro said it has not been named as a defendant but has suspended Liaw and Chang and terminated its relationship with Sun.
The White House released legislative recommendations for a national AI policy framework on March 20, calling on Congress to establish unified federal standards that 'minimize burdens' to replace conflicting state AI laws. The framework focuses on priorities such as streamlining federal data center permitting, addressing copyright issues in AI model training, and cultivating AI talent, while explicitly opposing the creation of a new federal AI regulatory agency. Consumer advocacy groups criticized the framework for favoring large tech companies, while industry organizations supported its pro-innovation orientation.
The U.S. Securities and Exchange Commission (SEC) announced on Monday that Margaret A. Ryan, head of the Enforcement Division, has resigned without stating a reason. Ryan was appointed about six months ago by SEC Chair Paul S. Atkins. The SEC has designated Chief Deputy Director Sam Waldon as acting head starting Monday and expects to name a permanent successor within weeks. Ryan's departure has raised external concerns about the direction of SEC enforcement efforts, especially against the backdrop of accounting and auditing enforcement cases falling to a nine-year low in 2025.
U.S. Customs and Border Protection (CBP) has established a four-step process to refund fees collected from importers under the International Emergency Economic Powers Act (IEEPA) tariffs, which were struck down by the Supreme Court last month. CBP outlined this process in a filing submitted to the U.S. Court of International Trade on Thursday, and revealed that it is developing new features in the Automated Commercial Environment to calculate and deliver refunds.
With the advancement of new regulations such as Pillar 2 and AI technology, tax and finance departments are seeking to restructure how they access data. Daren Campbell, EY Americas Tax Technology and Transformation Leader, says that new regulations provide an opportunity to secure budget, but data silos and rigid processes remain the main obstacles to achieving AI transformation.