Securities and Exchange Commission v. Philip R. Jacoby, Jr., et al.

Analysis Group was retained by the US Securities and Exchange Commission (SEC) in a securities fraud litigation against Osiris Therapeutics, a Maryland-based biotech company, and four of its former top executives who allegedly prioritized revenue growth over lawful accounting and misled investors in the process. The SEC charged that the defendants overstated company performance and used artificially inflated prices to issue fraudulent financial statements for a period of nearly two years; backdated documents to recognize revenue in earlier periods; and prematurely recognized revenue on delivery of products to be held on consignment.

An Analysis Group team led by Managing Principal Richard Starfield and Vice President John Drum supported academic affiliate John Lacey as an accounting expert. Professor Lacey filed an expert report and testified at deposition, opining on revenue recognition issues.

The complaint against the company was settled. Three of its former executives entered into consent judgments issued by the US District Court for the District of Maryland, concluding the litigation.