COVID-19 Disclosures Bring Risks For Life Sciences Companies

by David Axelrod and Kahlil Williams
April 16, 2020
COVID-19 has upended every corner of the financial markets, including the disclosure regime for publicly traded companies. Over the last few weeks, the number of disclosures relating to COVID-19 has exploded, with as many coronavirus-related 8-K filings in the first two days of April (more than 150) as in the first two months of 2020.

Simultaneously, the U.S. Securities and Exchange Commission[1] and Financial Industry Regulatory Authority[2] have announced that they are actively monitoring the markets for “frauds, illicit schemes and other misconduct” concerning COVID-19, and SEC Chairman Jay Clayton recently recognized investors’ thirst for information[3] as earnings season approaches.

These developments, combined with substantial market volatility, will provide countless opportunities for regulators (and private parties) to seize on corporate disclosures relating to COVID-19 as the basis for litigation and enforcement actions.

Reprinted with permission from Law360, April / 2020

Read More

Copyright © 2020 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

Subscribe to Ballard Spahr Mailing Lists

Get the latest significant legal alerts, news, webinars, and insights that affect your industry.