Under the securities law, liability for misstatements:

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Liability for misstatements can be imposed on corporate officials for overly optimistic statements that are not soundly grounded. This is known as the "bespeaks caution" doctrine, which provides protection for forward-looking statements that are accompanied by cautionary language, but does not protect statements that are not grounded in reality. Securities offerors can also be held liable for misstatements under securities laws. Misstatements in press releases are also not protected by the First Amendment if they are deemed to be materially false or misleading.

Under the Securities Law, Liability for Misstatements