It seemed like a good idea. Provide a local media outlet with a peek under the company’s hood—give a tour of the facilities, answer questions about operations, preview a few promising transactions. When the article ran, however, with facts misstated and statements taken out of context, it quickly turned into a very bad idea for the hypothetical company and for its chairman and CEO, John Smith.
Within days, the company, its board of directors and Smith were caught in a media firestorm. Various news outlets raced to allege that Smith was engaged in self-dealing and conflicts of interest. Those stories suggested federal securities law violations, and an influx of civil actions for securities fraud and fiduciary duty breaches was ratcheting up the pressure. Attempts to correct the record only fanned the flames.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
