COVID-19: Updating Risk Factor Disclosure In SEC Filings

As the COVID-19 pandemic evolves, companies are experiencing a host of adverse consequences and gaining insight into additional potential risks of the pandemic to their businesses. At the same time, general uncertainty continues to prevail about the severity, duration and long-term impacts of the pandemic.

As a result, public companies must evaluate the need for COVID-19-related disclosures, including known or reasonably likely effects of, and the types of risks presented by, COVID-19 and related business and market disruptions. The Securities and Exchange Commission's Division of Corporation Finance recently provided guidance in CF Disclosure Guidance: Topic No. 9 (March 25, 2020), which highlights the staff's view that disclosure of COVID-19-related effects may be necessary or appropriate, including in a company's risk factor disclosures.