Beware of Potential Securities Litigation Over Risk Factor

Reuters Legal News

Virginia F. Milstead Mark R.S. Foster

Partners Virginia Milstead and Mark Foster discuss recent decisions from the Ninth Circuit Court of Appeals that reaffirm that allegedly misleading risk disclosure statements can be the focus of securities litigation claims. The authors caution companies to review disclosures to make sure that they are not described in contingent or hypothetical language if the risks have occurred, or are occurring or recurring.