Companies Put the Best Face on Covid-19’s Financial Impact

The Securities and Exchange Commission has, for a very long time, reminded issuers of the need to disclose negative information along with positive developments. The warning that the issuer should be consistent in positive and negative adjustments when showing the impact of the pandemic follows historical advice. The disclosures of the negative side should not be limited to risk factors. Following this guidance will, hopefully, mitigate litigation exposure as well.