Adecision this month by a federal court in Boston, and the U.S. Supreme Court’s recent refusal to hear an appeal of a case from Chicago, underscore the importance of drafting forward-looking statements to make sure they will be protected by the “safe harbor” provision in the Private Securities Litigation Reform Act of 1996.
Under the PSLRA, companies can avoid liability for inaccurate forward-looking statements as long as the statement is identified as forward-looking and is accompanied by “meaningful cautionary statements” warning investors about factors that could cause actual results to change.
