Company’s 10-K Disclosure of Legal Proceedings Leads to Employee Retaliation Claim
A recent Seventh Circuit decision suggests public companies should take care when disclosing employment-related litigation by name in their Form 10-K. In Greengrass v. International Monetary Systems, the court held that a former employee could assert retaliation against a former employer when the company listed her discrimination case by name and described it as “meritless” in the company’s annual report filed with the SEC. This may merit revisiting contingency and legal proceeding disclosures to ensure they say no more than required by law. Read the commentary.