> if a company is being investigated by the SEC, and knows it, that is material information that must be disclosed to the market
In 2016 the SDNY ruled that issuers do not have a general duty to disclose the existence of an SEC investigation or a Wells Notice. Because "the securities laws do not impose an obligation on a company to predict the outcome of investigations".
> the SEC will not disclose that information in response to a FOIA request
Not /intentionally/, of course.
> Such behavior would provide no useful information about the state of a company's financials
Some hedge funds have done very very well for themselves by making inferences from parking lot data. You don't need to be right 100% or 75% of the time for the strategy to work, you know.
In 2016 the SDNY ruled that issuers do not have a general duty to disclose the existence of an SEC investigation or a Wells Notice. Because "the securities laws do not impose an obligation on a company to predict the outcome of investigations".
https://www2.law.temple.edu/10q/sec-investigations-disclose-...
> the SEC will not disclose that information in response to a FOIA request
Not /intentionally/, of course.
> Such behavior would provide no useful information about the state of a company's financials
Some hedge funds have done very very well for themselves by making inferences from parking lot data. You don't need to be right 100% or 75% of the time for the strategy to work, you know.