Nasdaq Eliminates Duplicative Press Release and Notification Requirements

On March 15, 2010, the Securities and Exchange Commission approved Nasdaq's proposed rule change to modify its requirements pertaining to public disclosures by listed companies. In an effort to eliminate duplicate disclosures, the Nasdaq rule change will allow companies to make a public announcement by filing a Form 8-K, where required by SEC rules, or by issuing a press release.

The approved rule change became effective on March 15, 2010 and includes the following:

• Going Concern Qualification. Nasdaq eliminated the requirement, previously found in Rule 5250(b)(2), that a company issue a press release announcing the receipt of an audit opinion that expresses doubt about the ability of the company to continue as a going concern. Nasdaq reasoned that a press release about a company's receipt of a going concern opinion is unnecessary because the company must include the audit opinion in its annual filing with the SEC and the annual filing must be distributed or