SEC Sues AT&T over Selective Disclosure of Material Information to Wall Street Analysts

217
SHARE

“Womack, Evans, and Black knew or recklessly disregarded that the information
that they provided to the analysts during these calls was both material and nonpublic. Among other things, they knew that they were prohibited from selectively disclosing AT&T’s internal revenue and related data to analysts, and they did so with the expectation that the analysts would act on the information to substantially reduce the estimates they published for investors,” according to the Commission.

In a statement, SEC New York Office Regional Director Richard Best said, “AT&T’s alleged selective disclosure of material information in private phone calls with analysts is precisely the type of conduct Regulation FD was designed to prevent.”

On the other hand, SEC Division of Enforcement Acting Director Melissa Hodgman commented that the Commission “remains committed to assuring an even playing field by taking appropriate action, including litigation when necessary, against public companies and their executives who selectively disclose material nonpublic information.”

SEC complaint represents a “departure” from its Regulation FD enforcement policy says AT&T

In response, AT&T commented that the lawsuit “represents a significant departure from the SEC’s own long-standing Regulation FD enforcement policy and is inconsistent with the testimony of all who participated in these conversations.”