Venture Capital Firm v. Home Furnishings Company

The plaintiff, a venture capital firm, invested in the preferred stock of a home furnishings company. The redemption price of the preferred stock was to be based on a measure of earnings determined in accordance with US GAAP. Following the filing of a lawsuit in connection with the redemption, an Analysis Group team led by Managing Principal Jeffrey Malinak and an external accounting expert was retained to conduct research regarding whether various accounting treatments were consistent with US GAAP.