Securities Newsroom

Federal Securities Law And The Need To Disclose The Risk Of Canceling Nuclear Plant

Almost every electric utility company involved in nuclear plant construction has experienced difficulty as a result of the deteriorating condition of the nuclear industry as a whole.^The thrust of a growing number of lawsuits brought against electric companies for alleged violations of federal securities laws is that the companies failed to reveal cost overruns, delays, and the risk of cancellation and write-off of nuclear plants in their annual reports and registration statements.^A review of several suits and the disclosure requirements of securities statutes concludes that, although investors have known about utility problems, they have just become aware this year that the entire financial viability of the electric companies is threatened