In January 2019, Roosevelt Corporation acquired Stanford Company in a business acquisition. By early April 2019 (almost 3 months from the date of acquisition), the following issues came to light:

1. Roosevelt planned to retain the Stanford Companys current CFO after the business acquisition was finalized. However, in early March, Roosevelts management learned that the CFOs long-term secretary had filed a $5,000,000 lawsuit against the company alleging that the CFO had sexually harassed her for several years. The secretary had not disclosed the sexual harassment previously because the CFO had a close personal relationship with the former owners. With the change in ownership, the secretary feels free to reveal the on-going situation to the new owners and management.

In determining the goodwill from the acquisition, Roosevelt had used

• nothing for the lawsuit.

Should Roosevelt leave these numbers unchanged, or should it re-examine these valuations in light of subsequent events?