Tag: McDonalds

Not Lovin’ It: SEC’s Settlement With McDonald’s Former CEO Highlights Continued Focus on Executive-Related Disclosures | Vinson & Elkins LLP 

The Order is instructive for both executives and issuers. For one, the Order demonstrates that public company executives must tell the full truth in internal investigations—even when doing so may have professional and personal implications. Failure to be candid may lead not only to civil enforcement by the SEC but also—like it did for Easterbrook—a breach of fiduciary duty action…

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McDonald’s, SEC Saga Creates Reporting Headaches for Companies

The SEC’s unprecedented finding that McDonald’s didn’t disclose enough information about a CEO firing is prompting questions about whether companies have sufficiently clear guidance on what to tell investors in similar situations. The fast food giant deemed its 2019 firing of Steve Easterbrook—for having a relationship with a subordinate—as termination “without cause.” That allowed Easterbrook to leave with tens of…

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Everything is securities fraud – Bloomberg

When I write about this, sometimes I get complaints from securities lawyers who say “no, securities fraud doesn’t work that way: You are not required to disclose everything immediately, and it is only securities fraud if the company puts out some misleading disclosure. Just not mentioning a bad thing is not fraud.” 6  And so in fact the technical game of…

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