financial disclosure claims
Claims made against corporate directors and officers pertaining to statements
made about anticipated earnings or other financial issues. The basis of such
claims is that directors' and officers' failure to disclose or untimely disclosure
of certain information has caused stockholders to suffer losses. Financial disclosure
claims most frequently arise when quarterly earnings fall below expectations
based upon earlier statements made by directors and officers and when
directors and officers do not disclose some unfavorable
but foreseeable event (e.g., severe losses from uninsured product liability
claims) on a timely basis.
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