“Disclosure Games®” is a term we use to highlight those public companies engaging in disclosure practices that in our opinion may be misleading, confusing, evasive, or otherwise lacking the transparency needed for investors to make well-informed investment decisions regarding a potentially material exposure.
We previously found Advanced Drainage Systems had repeatedly used shoddy disclosure practices on what had become a protracted and formal SEC investigation.
Summary and Opinion: Did you catch that Advanced Drainage Systems just resolved a long-running SEC investigation? Before you cheer, read on.
Until yesterday, WMS was involved in what had become a protracted and formal SEC investigation on which the company had otherwise provided little substantive detail or update. This is both misleading and shoddy. It’s also a sign that management views investors as something to be tolerated, not kept current on material exposures.