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From the Archives: “Revenue Recognition Bulletin Vol. 1 No. 1”

By Paul Arne and Ross Albert

This Morris, Manning & Martin Revenue Recognition Bulletin reviews case developments in the Rev Rec area and identifies practical suggestions for addressing these developments.

On January 12, 2004, Computer Associates International (“CA”), one of the world’s largest software companies, announced that it had received a so-called “Wells Notice” from the staff of the SEC. The SEC’s Division of Enforcement issues a Wells Notice when it plans to recommend an enforcement action to

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Georgia Appellate Court Finds Hawks-Thrashers Sale Verbal Agreement Binding

The Georgia Court of Appeals upheld a decision to hold Turner Broadcasting System to its apparent verbal agreement to transfer ownership of the Hawks and Thrashers franchises, ordering the payment of the original $281-million award.

Facts: During the course of negotiations with Texas business man David McDavid, Turner entered into a Letter of Intent that precluded binding negotiations without a  signed agreement. However, that contract had expired by the time Turner representatives purportedly said “we have a deal” in continued verbal negotiations. McDavid had prepared a press release to announce the purchase when Turner retracted the offer, prompting McDavid to sue

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