Definition of Information Litigation in SEC Filings
Facts litigation, for purposes of required filings with the Securities and Interchange Comission, is any lawsuits in which a publicly held society is a named defendant and that may aftermath in the bill of important damages by the association to the named plaintiff.
SEC Registration Requirements
Under the Securities Deed of 1933, corporations that overture securities for sale to the usual are required to reveal in a entire registration statement information information to investors on things that may own adverse ramifications for the calling.
Only those pending lawsuits that may result in a judgment for substantial damages against a corporation would qualify as material. Thus, major class action lawsuits too as any antitrust litigation filed by the Department of Justice would clearly qualify as material litigation for purposes of the statutory disclosure requirements.
Significance
Pursuant to the regulations of the SEC, public companies are required to amend their disclosure statements on a quarterly basis by filing with the SEC a Form 10Q that updates the financial statements and other substantive information about the business.
