How Firms Use Pre-IPO Confidentiality to Fend Off Lawsuits

A well-intentioned feature of U.S. law helps firms planning initial public offerings (IPOs) maintain confidentiality on their regulatory filings and related correspondence until two weeks before they launch their road shows. In an unintended outcome, pre-IPO firms have used that confidentiality provision to avoid costly, time-consuming and distracting lawsuits from competitors, former or current employees, suppliers, customers and other such non-shareholders, according to recent research by faculty at Wharton and elsewhere.

Read the full article at Knowledge@Wharton.