Safe-harbor-statement meaning

A statement typically found in the fine print at the end of a corporation’s press release that says that the “forward-looking statements” are based on a number of events and assumptions. It cautions investors not to put too much reliance on these statements because they are subject to a number of uncertainties that the company can’t control and that may cause the results to differ from the statements. The readers of the release are referred to the company’s filings with the SEC for further information. The safe harbor statement received a large push from the Private Securities Litigation Reform Act of 1995. That law protects issuers of publicly-traded securities from liability for certain financial projections and related facts and figures. The SEC’s rules require companies to say that their projections are forward-looking and to include cautionary statements advising investors about key risk factors that might affect the statements’ accuracy.
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