The recently enacted Securities Litigation Reform Act gives public companies a safe harbor for some predictive statements

Article Abstract:

The recent passage of the Securities Litigation Reform Act of 1995 offers companies a 'safe harbor' for forward-looking statements, but they should tailor disclosures to meet the statutory requirements. Cautionary language must be specific to the information offered, not boilerplate; the magnitude of any risk should be disclosed; assumptions underlying projections should be revealed; and warnings should be prominent. Oral communications and the Act's legislative history are discussed.

United States, Disclosure (Securities law)

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Actual use of inside information at issue

Article Abstract:

The 2d Circuit implied in US v. Teicher that an insider trading conviction no longer requires that a defendant have used the inside information but that possession of that information suffices. The court identified three factors which favor the 'knowing possession' standard necessary for an insider trading conviction. This standard is broader than prior case law and securities firms may need to review their policies so that they will not be subject to SEC scrutiny.

Cases, Insider trading in securities, Insider trading (Securities)

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Was the Lampf quick fix constitutional?

Article Abstract:

Securities and Exchange Act Section 27A was enacted in response to the Supreme Court's ruling in Lampf, Pleva, Lipkind, Prupis & Petigrow v Gilbertson to deal with that decision's effect on the statute of limitations period applicable to federal securities fraud suits. The courts disagree on the constitutionality of legislative modification to a judicial ruling and the limitations issue may progress to the Supreme Court a second time.

Limitation of actions, Statute of limitations

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