Ennis, Inc.: Michael Schaefer Not Nominated for Re-election

The Private Securities Litigation Reform Act of 1995 includes provisions that protect companies when making forward-looking statements. This “safe harbor” is crucial for businesses as it offers some protection from legal action related to statements about future events, plans, or goals. By complying with the Act, companies can avoid potential lawsuits that may arise from these types of statements.

One key aspect of the Act is the requirement for companies to identify their forward-looking statements clearly. This enables investors and other stakeholders to differentiate between historical facts and future projections. By providing this distinction, companies can manage expectations and reduce the risk of confusion or misinterpretation.

Moreover, the Act encourages companies to accompany their forward-looking statements with cautionary language. This serves as a reminder to readers and listeners that these statements are based on assumptions and estimates that may not materialize. By including such language, companies can mitigate potential claims of false or misleading information.

In addition, the Act emphasizes the importance of establishing and maintaining policies and procedures for monitoring and updating forward-looking statements. This ensures that companies continuously assess the accuracy and relevance of their projections, allowing them to adjust their statements as needed. By staying proactive in this regard, companies can enhance transparency and credibility with investors and regulatory bodies.

Furthermore, the Act provides guidelines on the disclosure of material risks and uncertainties associated with forward-looking statements. This transparency is crucial for investors to make informed decisions about the company’s future prospects. By openly acknowledging the potential challenges and obstacles that may impact the company’s performance, businesses can demonstrate their commitment to accountability and integrity.

Overall, the Private Securities Litigation Reform Act of 1995 serves as a valuable tool for companies seeking to communicate effectively with investors and stakeholders. By following the Act’s provisions and guidelines, businesses can navigate the complexities of making forward-looking statements while minimizing legal risks. Ultimately, compliance with the Act promotes transparency, accuracy, and accountability in corporate communications, fostering trust and confidence among all parties involved.