On August 8, 2008, WLF filed formal comments with the Financial Accounting Standards Board (FASB) opposing FASB’s highly controversial proposal to require a company to disclose confidential information in its financial statements regarding contingent liabilities, namely, the company’s assessment of pending or threatened litigation against it. WLF argued that not only is such information difficult and costly to quantify, it may also mislead investors, result in an unfair advantage to plaintiffs and their attorneys, and infringe on the company’s attorney-client privilege.
WLF also argued that the Securties and Exchange Commission (SEC) must formally adopt any such changes to the accounting rules under the Administrative Procedures Act.