Posts Tagged ‘SEC Disclosures’

TMI! Worst SEC disclosures of 2008

December 31, 2008

Fun poll over at footnoted.org where you can vote on which disclosure was must embarrassing.  My top favorites were Wal-Mart’s $1,350 an hour for a legal consultant and Playboy’s 400k for Hugh Hefner’s live-in girlfriends (I voted for Hugh).

But there are more so go vote now!

Disclosing Litigation to the SEC

November 1, 2008

This has long been a pet-peeve of mine.  Why are companies allowed so much latitude about this kind of reporting?   Some companies decide none of their litigation rises to the level of disclosing.  Says who?  Other companies give detailed and useful information about their litigation (see Walmart’s latest 10-Q) in the section labeled “legal proceedings,” other companies bury this information in a footnote (see McKesson which include this info under “note 12 other Commitments and Contigent Liabilities in its latest 10-Q), still other companies spin the nature of the litigation to make them appear in a good light: (see previous post on Arthocare)  Since litigation is public information, fairly easy to verify, does the SEC do that?  And why do they allow companies to hide their litigation in miscellaneous footnotes?  If someone has an answer please post.