Tuesday, March 30, 2021 10:41:22 AM
By: Stephanie Dube Dwilson
Financial Statements
When a lawsuit is pending, executives have no idea how the suit will affect the company's financial future or how much money it may need to pay up if it loses. So companies typically don't include information about pending lawsuits on annual reports, SEC filings or other financial statements. If they do include a mention, it's usually just in a footnote. In these situations, unless the lawsuit is big in the media, the public might not even know about it, so the stock price won't be affected.
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