SEC Commissioner Cautions Against Early Disclosure

Law360, New York (March 2, 2006, 12:00 AM EST) -- Is there such a thing as too much disclosure? Some companies have begun disclosing settlements and investigations that have not yet been approved by regulators in statements that could end up misleading investors.

Unlike in the pre-Enron era, in which the worry was that companies would not disclose enough, regulators are concerned that now companies may disclose too much.

Companies are increasingly making premature disclosures, a policy that may end up backfiring, said SEC Commissioner Paul Atkins.

“I understand that many companies have a default instinct...
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