Look Before You Leap Into A Securities Litigation Trap

Law360, New York (October 31, 2012, 11:18 AM EDT) -- The possibility of expiring tax cuts combined with mandatory reductions in federal spending at year end have prompted observers to warn that the U.S. faces a “fiscal cliff” over which the economy might well plunge into another recession. If Congress fails to reach an agreement that avoids the cliff, corporations could see recent stock price improvements wiped out, and plaintiffs’ lawyers are sure to bring shareholder claims alleging that companies did not adequately disclose or otherwise account for this risk.

Absent congressional intervention, automatic tax and...
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