Search

Why do press releases and other corporate documents have a safe harbour notice?

Question by tynamitom: Why do press releases and other corporate documents have a safe harbour notice?
I was reading Research In Motion’s press release of the Blackberry Playbook, and I saw a safe harbour message at the bottom of it.
http://press.rim.com/release.jsp?id=4577 <-- read for yourself Here's a quote of it === Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used herein, words such as "expect", "anticipate", "estimate", "may", "will", "should", "intend," "believe", and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances. Many factors could cause RIM's actual results, ..................................... These factors should be considered carefully, and readers should not place undue reliance on RIM's forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. .................. === And I thought, ARE YOU SERIOUS? People nowadays have to mention that a positive press release doesn't guarantee that the product mentioned will be successful (to shareholders). I searched SAFE HARBOUR on Wikipedia and it said... "A safe harbor is a provision of a statute or a regulation that reduces or eliminates a party's liability under the law, on the condition that the party performed its actions in good faith. Legislators include safe-harbor provisions to protect legitimate or excusable violations." Are you serious? People have to have a liability waiver for press releases do they? Has suing culture in America gone that bad? If I'm a shareholder and I take shares in Research In Motion, and the Playbook gets released and fails like the Microsoft Kin; that article is implying that before the "The United States Private Securities Litigation Reform Act of 1995", I could sue Research In Motion for being misleading to shareholders in their press release, or for misrepresentation. Someone explain that to me? Why was that law made and why are lawyers telling businesses to include it onto their press releases and other material they publish. Why are people doing it? What would happen if businesses don't do it. More references --> http://en.wikipedia.org/wiki/Safe_harbor // http://en.wikipedia.org/wiki/Private_Securities_Litigation_Reform_Act

Best answer:

Answer by TruthB
Prophylactic!
For protection. Not all have the same waiver, user terms, etc.

ARE YOU SERIOUS?! Everything has a protection from litigation statement!
Package of hamburger tells the proper cooking! Look at a Turkey – instructions, proper temp and a toll free number protect from litigation.

Add your own answer in the comments!