Analysis

China Trade War Leads Cos. To Disclose Tariff-Related Risks

Law360 (July 17, 2018, 9:54 PM EDT) -- More companies are likely to disclose risks to their business stemming from U.S. tariffs on Chinese goods and vice versa amid the escalating trade war between the two countries, attorneys say, in an effort to mitigate vulnerability to investor lawsuits should their stocks plunge.

The U.S. Securities and Exchange Commission requires companies to tell investors the "most significant factors" that can make ownership of their securities risky. Companies do so in their registration statement when they go public and later update those risks periodically.

The intensifying trade dispute between the United States and China marks the latest development to force issuers...

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