Sara Lee Disclosure Failure

Sara Lee (SLE) finally came clean and reported that their CEO had suffered a stroke and needed to take a leave of absence. I am sure that everyone wishes Brenda Barnes all the very best in her recovery. The medical condition goes back to at least May 14 when Sara Lee announced a temporary medical leave. She must have been suffering well before that point. There have been health issues going back to Oct 2006 when she missed an annual meeting.

The health of the CEO is of major concern to shareholders. Incapacitated CEO’s cannot create shareholder wealth. Incapacitated CEO’s can easily destroy shareholder wealth. Critical information was withheld from the investor community. CEO health is material information. There is something called Reg FD. Sara Lee has failed miserably.

Where is the SEC investigation? Where are the class action lawsuits?

Disclosure: No position in any stocks mentioned in this post.