Companies Must Show Discretion in Public Statements When Sued

A recent federal court ruling in Massachusetts in the case City of Fort Lauderdale Police and Firefighters' Retirement System v. Pegasystems should give legal leaders and communications management pause about making routine public statements disdaining the merits of pending claims. As the authors in describe in this article for Law360, the court held that a defendant public company's boilerplate public denial of the merits of a lawsuit against it could form the basis for a claim that the statement was false or misleading, in violation of the federal securities laws.

Read the full article here.