Recent events have put companies on notice that practices that have been rubber-stamped by regulators for years might suddenly be declared illegal. They have also demonstrated that executives can’t be too careful when drafting public communications: allegations are no longer based just on outright lies and omissions but also on words or phrases said to create a misleading impression. One recent example was the SEC’s investigation of American International Group, in which the SEC and the US Justice Department found fault with several press releases.
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