Legal Issues - SEC Filings (Yahoo example)

[LC]

Example here: http://www.footnoted.com/disclosure-developments/was-yahoo-blindsighted-by-mexico/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Footnotedorg+%28footnoted.com%29&utm_content=Google+Reader

 

Can anyone shed any light as to how this can be? My first reaction is, "Oh, maybe it has to do with an obscure filing rule about international operations/lawsuits" but my gut tells me that is simple being optimistic. I recent read Einhorn's book, and even Allied Capital would disclose it's legal issues in their filings (although usually in a totally different section - i.e. not the "Legal" section).

 

I was hoping some of the more seasoned investors here had any idea of how Yahoo can simple not disclose the potential for such a large lawsuit.

[oddballstocks]

I know you asked for a seasoned expert, I am neither seasoned nor an expert, but I can't keep my mouth closed….

 

I seem to remember reading something a while back talking about what constituted a material lawsuit.  The idea was if the prosecutor didn't mention how much they'd settle for, and there were no directly applicable caselaw then the plaintiff could reasonably state that they aren't aware of any material lawsuits. 

 

A fascinating side note, I find European companies are overly cautious in this regard.  They squirrel away funds in a reserve to protect themselves just in case. 

 

I'd love to hear a lawyer comment on this.