What does Financial Disclosure Claims mean? Read on to discover the definition & meaning of the term Financial Disclosure Claims - to help you better understand the language used in insurance policies.
Financial Disclosure Claims
Claims made against corporate directors and officers pertaining to statements made about anticipated earnings or other financial issues. The basis of such claims is that directors' and officers' failure to disclose or untimely disclosure of certain information has caused stockholders to suffer losses. Financial disclosure claims most frequently arise when quarterly earnings fall below expectations based upon earlier statements made by directors and officers and when directors and officers do not disclose some unfavorable but foreseeable event (e.g., severe losses from uninsured product liability claims) on a timely basis.
We hope the you have a better understanding of the meaning of Financial Disclosure Claims.