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Hmm...if they hadn't complied, in three months more than $20 million would have accrued. Would that have been material enough to require disclosure in Yahoo's

Hmm...if they hadn't complied, in three months more than $20 million would have accrued. Would that have been material enough to require disclosure in Yahoo's public filings? If so, how would it have been described? It seems as if by complying with SEC regulations, Yahoo would have been forced to violate secrecy rules with regards to the origin of the fine. That would have been an interesting conundrum.

adventured 12y ago
It certainly would have been material within a short amount of time. One could debate exactly how many quarters that line is hit at, but at $45m to $90m it starts to become very stupid to hide from shareholders from a legal standpoint. Not reporting the exact details of a $90m acquisition is not a huge deal (for Yahoo). Not reporting on-going government fines that have amounted to $90m in a year, would be a huge deal. One is in theory the acquisition of value and enhances the business, the other is just a black hole of cash destruction. Further, beyond the money, intentionally doing something against the US Government such that you're getting fined per day, is a big issue for shareholders to know about. Especially given the power the government wields these days.