Implications Of Richman V. Goldman Sachs Group
July 17, 2012
U.S. District Judge Paul Crotty of the Southern District of New York has issued a ruling holding that a public company did not have a duty, upon which a federal securities fraud claim could be based, to disclose the receipt of a Wells Notice from the U.S. Securities and Exchange Commission.
This article examines the implications of the decision for public reporting companies, which are increasingly faced with the difficult question of whether to disclose the existence of a governmental investigation and subsequent receipt of a Wells Notice.
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