Before PayPal was handed an enforcement action by the Consumer Financial Protection Bureau in May 2015, the investment community knew there was a chance it would happen. How? Because the company disclosed the CFPB’s investigation into its practices as a material event in a quarterly filing with the Securities and Exchange Commission.
But when does a company need to disclose information?
Wells Fargo was asked why it did not disclose the status of its investigation into fraudulent practices before an enforcement action was made public. Read on for details of what makes a “material event.”