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Originally posted by: davidpom
Probably lots of companies do this, worldwide. The real question is not how many do it - but how many get caught doing it.
A lot more get caught than you would imagine. Many times the infractions are not intentional but the mistakes of insufficient legal departments.
There is a special breed of lawyers out there that buy a minimum amount of stock in a great many public companies then spend time scrutinizing 10Qs, proxy statements and annual reports looking for mistakes and omissions. They then sue the companies. Even when the infractions are unintentional or minor the lawyers usually get paid off just to make them go away.
