Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Friday, July 28, 2006
Bristol-Myers Conundrum
Bristol-Myers Squibb Company (NYSE: BMY) when they slipped out that they were the subject of criminal proceedings neglected to mention that their offices were actually raided by FBI agents who took away boxes of evidence. This raises an interesting legal conundrum. On one hand a company has the responsibility to disclose material facts. On the other hand a criminal lawyer usually gives you instructions to shut up an not say anything. "What you say can and will be used against you in a court of law" The stock dropped in value creating investor pain. Who is responsible? What class action should or will determine where investor justice resides on this one?