InvestorsHub Logo
Followers 42
Posts 3685
Boards Moderated 2
Alias Born 01/16/2009

Re: onemorecomma post# 48266

Thursday, 04/18/2013 1:34:40 PM

Thursday, April 18, 2013 1:34:40 PM

Post# of 71458
One additional comment on this PR and it's related to that long paragraph at the end that all the penny stocks include as an out just in case the info contained turns out to be incorrect for some reason.

Safe Harbor does not apply to penny stocks.

Section 27A -- Application of Safe Harbor for Forward-Looking Statements

b. Exclusions.

Except to the extent otherwise specifically provided by rule, regulation, or order of the Commission, this section shall not apply to a forward-looking statement--

1. that is made with respect to the business or operations of the issuer, if the issuer—

C. issues penny stock;


http://taft.law.uc.edu/CCL/33Act/sec27A.html

9/ The District Court rejected the first defense because the statutory SAFE HARBOR does not apply to Commission enforcement actions, or to penny stocks, like UNDR stock, citing 15 U.S.C. §§ 77z-2(b)(1)(c), 77z-2(c), 78u-5(b)(1)(c), and 78u-5(c).
...

Rel. No. 53122 A/ January 13, 2006
http://www.sec.gov/litigation/opinions/34-53122a.pdf
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.