A New Risk Factor: The JOBS Act

June 15, 2012

Michael W. Stocker weighs in on the JOBS Act and its unintended consequences

The trend may reflect an unintended consequence of the act, says Michael Stocker, a partner at law firm Labaton Sucharow who represents institutional investors. In their filings, notes Stocker, companies are saying that because they "are willing to take advantage of the related standards for disclosures under the JOBS Act, one real risk is that they will be punished by investors, since investors won't be getting as much information and they may have less confidence in how the companies are doing."