Forward-Looking Statements: Safe Harbors Compliance Guidelines
The securities law disclosure framework has evolved to encourage [1] ; companies acting in good faith to disseminate relevant projections pertaining to their businesses to the general public "without fear of open-ended liability." [2] Key Takeaways Available defenses are not always interchangeable. Projections must be non-misleading and be made in good faith, which sometimes means following the SEC's understanding of such terms, including the guidelines on the manner of presentation of such projections. The most straightforward approach to protecting good faith non-misleading projections is to consistently comply with the Private Securities Litigation Reform Act of 1995 (PSLRA) requirements in drafting safe harbor legends. Safe-harbor language should be incorporated not only in SEC filings but also in all other forms of communication containing forward-looking (to predict, project, or use future events as expectations or possibilities.) statements, including oral communic...