Co-ops
- vs.
Corps.
An Example of
a Special Note for a Forward-Looking Statement from a Publicly Traded Food Product
Corporation
by Hal Brown
When publicly traded
corporations, as opposed to cooperatives, issue statements which anticipate future growth,
or "forward-looking statements," including statements about the Company's future
plans, goals and other events which have not yet occurred, there are legal ramifications
to what is said publicly. Thus cautionary notes will often be appended to documents such
as press releases to the effect of "these statements are intended to qualify for the
safe harbors from liability established by the Private Securities Litigation Reform Act of
1995. They can generally be identified because the context of such statements will include
words such as believes, anticipates, and expects."
Northland, for example,
adds a detailed type of caution: "Whether or not these forward-looking statements
will be accurate in the future will depend on certain risks and factors including risks
associated with (i) development, market share growth and continued consumer acceptance of
the XYZ Company's branded products; (ii) integration of the operations of Inc.,
acquired in fiscal 19--, and the division of XYZ Corporation, acquired on
xx/xx/xxxx; (iii) strategic actions of XYZ's competitors in pricing, marketing and
advertising; and (iv) agricultural factors affecting X's crop and the crop of other North
American growers. These and other risks and factors that should be considered are further
set forth in the Company's Form S-3 Registration Statement (No. 333-53173) filed with the
Securities and Exchange Commission on May 20, 1998..
Readers should consider
these risks and factors and the impact they may have when evaluating these forward-looking
statements. These statements are based only on management's knowledge and expectations on
the date of this press release. The Company will not necessarily update these statements
or other information in this press release based on future events or circumstances."
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