When is it right to disclose government investigations?

Description

Abstract: When a company receives a subpoena or a notice from a government entity, watch out. Regulation S-K sets forth reporting requirements for various SEC filings. For example, Item 103 requires companies to describe “any material pending legal proceedings, other than ordinary routine litigation,” including “any such proceedings known to be contemplated by governmental authorities.” This article discusses the ins and outs of government investigations.