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The Securities Law Questions Raised By #MeToo

Law360 (February 28, 2018, 3:05 PM EST) -- There is a dearth of guidance as to whether and when a public company should disclose details concerning a sexual harassment investigation of one of its executives. Although companies often do not disclose internal or government investigations generally, and there are no cases obligating disclosure of sexual harassment investigations specifically, companies are not impervious to litigation for (1) failing to disclose such information, or (2) breach of fiduciary duty in connection with tolerating sexual harassment. As outlined herein, there are several theories involving federal securities laws...
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