Use Of Safe Harbor For Forward-Looking Statements

Law360, New York (August 4, 2010, 1:08 PM EDT) -- Public company reports and press releases generally have a section cautioning investors not to rely unduly on “forward-looking statements” because they could be wrong as future events unfold. Done properly, the cautionary statements create a safe harbor from liability. But how can a company have assurance that its description of future possibilities or projections is protected by the safe harbor?

An important recent case provides guidance, and the court had the benefit of the current thinking of the U.S. Securities and Exchange Commission in an amicus...
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