Mitigating Damage When Material Information is Disclosed

A company official can get in trouble with the Securities and Exchange Commission (SEC) for disclosing material information via Twitter [See "Disclosure Dilemmas"]. But good old-fashioned email can be the vehicle for a violation as well. However, a recent case shows that a company prepared to act quickly can mitigate its risk.

In September, 2009, the SEC settled a case against Christopher Black, former CFO of American Commercial Lines (ACL), who had sent an email from his home concerning an earnings guidance update to eight sell-side analysts who covered the company.

Michael Kozubek

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