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Matt Levine (of Bloomberg) has an ongoing joke: "everything is securities fraud". Essentially, if anything bad happens (data breach discovered, CEO caught in s
by rossdavidh 3y ago
Matt Levine (of Bloomberg) has an ongoing joke: "everything is securities fraud". Essentially, if anything bad happens (data breach discovered, CEO caught in sexual harassment complaint, whatever), and you didn't say in your previous quarterly filings that it was happening, then there is a case for suing you in court and claiming that was material info you didn't disclose. So far, the courts have not often been willing to say "that isn't securities fraud". Not saying it's impossible in this case, but I wouldn't count on it.
- civilitty 3y agoIsn’t that the same as mail and wire fraud? Defraud someone for financial gain over the internet or by using USPS mail and those umbrella charges apply.
- philipov 3y agoIt's different because in the case of mail and wire fraud, everything begins as fraud. A CEO having an affair isn't inherently fraud, but it becomes fraud when you don't admit to it.
- philipov 3y agoSomeone just posted this [https://news.ycombinator.com/item?id=38293817 https://news.ycombinator.com/item?id=38293817] by Matt Levine: "Hackers Know Everything Is Securities Fraud" I note that it was published less than 20 minutes ago, well after the above comment was written.
- rossdavidh 3y agoYeah, I got it in my inbox after making that comment, and thought "well that was a pointless comment", but I suppose it does help that you linked to the Levine column. It is no doubt a sign of the times (and not a good one) that the funniest columnist is a guy who works at Bloomberg who writes about "Money Stuff".
- philipov 3y agoSame as it's a sign of the times that the most reliable news show on TV is found on Comedy Central.