Chapter

Open FutureXSafe Harbor

Mike Fortun

in Promising Genomics

Published by University of California Press

Published in print February 2008 | ISBN: 9780520247505
Published online March 2012 | e-ISBN: 9780520942615 | DOI: http://dx.doi.org/10.1525/california/9780520247505.003.0015
Open FutureXSafe Harbor

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The U.S. Securities and Exchange Commission (SEC) provides a wealth of information on genomic companies and other corporations, and is the place where the “self-regulating” securities industry that undergirds the U.S. capital markets is, in fact, regulated. An important part of those securities regulations changed, however, with the passage of the Private Securities Litigation Reform Act of 1995. The change concerned how “forward-looking information” would be read by the courts, and how it should be read by someone sometimes called “the sophisticated investor” and other times called the more modest “reasonable investor.” This is the regulatory framework that shaped the genomic companies. Companies such as deCODE Genetics, Celera Genomics, Millennium Pharmaceuticals, and Human Genome Sciences Inc. have existed almost entirely in a historically specific regulatory framework of corporate disclosure; a framework that sanctions and encourages the promissory quality of the “forward-looking information” which has proven vital to these life-science corporations. In late 1994, the SEC issued a “concept release” calling for comments on proposed changes to the “safe harbor” provisions of federal securities law.

Keywords: Securities and Exchange; genomic companies; securities industry; Private Securities Litigation; forward-looking information; reasonable investor; deCODE Genetics; corporate disclosure; concept release; safe harbor

Chapter.  2976 words. 

Subjects: Evolutionary Biology

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