Covid-19 coronavirus: U.S. regulatory enforcement and civil litigation over ESG disclosures update

The Covid-19 coronavirus pandemic has brought into sharp focus the risk-related disclosures about a company’s ongoing financial condition.  This is especially true for risks that can unleash exponential change.  The attached publication discusses that with markets driving into bear territory, securities regulators and private stakeholders will look to press companies on their resiliency in light of remote, yet major, developments.  Given the potential for substantial penalties and high damage awards, the SEC, private plaintiffs and corporate management will seek to clarify the scope of MD&A Item 303 obligations and the potential risk they pose to imprecise or insufficient disclosures on known trends.