Wednesday, December 19, 2007

Is This a Forward-Looking Statement?

Novastar Financial announced this afternoon, about 14 seconds after the market closed, that its CEO, CFO and general counsel were all.... er...... resigning.

All seeking more time to spend with their families, I trust? Well, it is that time of year.

But here is what I thought was interesting about the Novastar press release announcing this entirely coincidental departure of three rather senior people from the company. At the bottom it reads as follows:

Forward Looking Statements

Statements in this report regarding NovaStar Financial, Inc. and its business, which are not historical facts, are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. . . .
This is legally mandated boilerplate I know, but the very use of the phrase "forward looking" seemed a bit odd. Doesn't that only apply to companies with a future?

© 2007 Gary Weiss. All rights reserved.

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