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Originally posted by sgtclub
I seems to me under the government's theory that nearly public statement made by an insider could give rise to liability, whether or not it is connected with the insider's company? And how does Reg FD play into this. Do you file an 8-K for every potentially material statement made by an insider outside his or her home/office?
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On first question, why? It extends only so far as statements about yourself or your company that might materially affect the company's value. If an important person within a company makes a false statement that leads investors to believe that person will remain with the company, thereby providing value, the approach applies. Implicit in her "i'm innocent" statements was a statement that "martha stewart living is alive and well."
Can't she satisfy Reg. FD by ensuring broad dissemination? Just don't talk between 9:30 and 4.
As for presenting testimony on reasonable investors, i'm no securities lawyer. How is this usually done? If through experts, then I submit someone at the USA office screwed up bigtime.
