From www.sciencedirect.com: Fair value accounting standards generally decrease litigation risk for firms, as higher reliance on these standards correlates with a lower likelihood of being sued.

The research indicates no significant association between fair value accounting and the risk of misstatements or fraud; however, it does observe a slight increase in litigation risk due to earnings volatility.

New fair value standards are associated with higher overall litigation rates, but the increase is smaller compared to non-fair value standards.