Is anyone aware of 10b5 shareholder litigation due to delayed recognition of goodwill impairment?  At least two working papers imply that firms expose themselves to such actions when they delay the recognition of goodwill impairment.  The first working paper, by Muller, Neamtiu and Riedl, suggests that insiders knowingly sell stock prior to the firm recording write-downs due to goodwill impairment.  The second working paper, by Li and Sloan, suggests that a very simple financial statement analysis strategy predicts the negative stock returns that preceed goodwill write-downs.  By simplifying the test for the initiation of investigation of goodwill impairment (i.e., is it more likely than not that the goodwill is impaired?), the new exposure draft on goodwill impairment tests could reduce the delay in recording goodwill impairments and at the same time reduce firms’ exposure to 10b5 lawsuits.  Any thoughts?