Client Alert
SEC Regulation FD Action Emphasizes Importance of Simultaneous Disclosure
March 12, 2010
In an apparent renewed effort to highlight disclosure requirements relating to investor communications, earlier this week the Securities and Exchange Commission settled its second FD enforcement action in the past six months. In the action settled this week, the SEC alleged that Presstek, Inc. had violated Regulation FD and Section 13(a) of the Securities Exchange Act of 1934, and that its former chief executive officer had aided and abetted the violations.
The SEC’s recent action emphasizes the importance of reviewing and updating disclosure controls and procedures to ensure that an intentional selective disclosure of material nonpublic information is simultaneously disclosed to the public. The Presstek matter also reiterates the importance of Regulation FD education for any person acting on behalf of an issuer, particularly with respect to interactions with the investment community, and “re-education” on the ramifications of Regulation FD violations.
Click here to read our client alert regarding the SEC's recent action.
Contact Information
If you have any questions regarding these issues, please contact either the Womble Carlyle attorney with whom you usually work or one of our Corporate and Securities attorneys at the following link: http://www.wcsr.com/corporateandsecurities.
This document is intended as an informational reminder and does not constitute legal advice. If you have any questions or would like to discuss a particular situation, please contact Womble Carlyle Sandridge & Rice, LLP. The purpose of this article is to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances.
