The SEC recently settled an enforcement action against Flowserve Corporation, its CEO and Director of Investor Relations for reaffirming the company’s previous earnings guidance in a private meeting with analysts, near the end of a reporting period. Companies should ensure that their Regulation FD policies are enforced and that their investor relations professional cautions analysts in a private setting about topics that are off-limits. Companies should be wary about changing or confirming any earnings guidance in a non-public forum, especially near the end of a reporting period.
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