Was Disclosure Unfair?

• Position: Webcast - Brief Article

The decision not long ago by Emulex Corp. to broadcast bad news via a Webcast is not one other companies may want to emulate.

Nothing wrong with a Webcast, of course -- but the California-based networking equipment maker appeared to contravene the Securities and Exchange Commission's recent Regulation FD ("fair disclosure") rules by not issuing a press release first, covering an announcement about disappointing sales. Instead, it sent a brief release, not detailing the news, that directed investors to its Web site, where CEO Paul Folino was to address a technology conference a few days later.

In doing so, Emulex appeared to be violating Reg FD rules stipulating that "material" disclosures be issued...