Under GAAP, the company is legally mandated by law to disclose it in the FS. Since the FS is the primary was the company communicates performance to investors,

Under GAAP, the company is legally mandated by law to disclose it in the FS. Since the FS is the primary was the company communicates performance to investors, they in fact are saying this to investors. Its called a legal provision or legal reserve. they need to set aside money for the eventual expense of the setlement. This is going to eat right into EPS. And, any material change in provision will be discussed. Plus, any investor worth their salt is going to be poring over FS disclosures, including any legal provisions. Admission of fault has nothing to do with FS. Its purely an insurance topic