In this client alert: “Lawsuit Highlights How Tariff-Related Risk Disclosures Are Under Shareholder Scrutiny,” Parker Poe summarizes recently filed securities class action litigation alleging a company’s failure to adequately disclose risks of tariff-related uncertainties in violation of Section 10(b) and Rule 10b-5 of the Exchange Act of 1934. The case and memo are instructive and forewarn of potential copycat litigation regarding the adequacy and accuracy of company’s disclosures around the expected implications of an unchartered and uncertain tariff and macroeconomic environment. While companies can’t prevent this type of litigation, the firm suggests discrete action items companies may consider to mitigate the risks.
This post first appeared in the weekly Society Alert!