Series 24: Safe Harbor For Statements By Issuers

Safe Harbor for Statements by Issuers

SEC Rule 175 offers some protection for issuers who make “forward-looking statements” in documents filed with the SEC or in annual reports to shareholders, which ultimately prove to be in error. Such statements made by or on behalf of an issuer are considered by this rule not to be fraudulent, unless one can show that the statement was made without a reasonable basis or with a lack of good faith. A forward-looking statement is defined as one that contains the issue