The Los Angeles Times has an article today on how disclosure issues can trigger shareholder litigation and SEC actions. The article focuses on the recent difficulties faced by many biotech companies. (The 10b-5 Daily has posted frequently on this topic.)
Quote of note: "Public demands that companies scale back secrecy have escalated since recent corporate scandals, and the SEC has supported more meaningful disclosure for public companies. Yet the pressures may raise particular issues in biotechnology because of the importance of test results and the profound effect that new products may have on the bottom line."