In late March the SEC charged Flowserve with violating
Regulation FD, or fair disclosure, and charged its chief
executive officer (CEO) and director of investor relations with
causing the violations. The action is the first brought under
Regulation FD to concern a reaffirmation of company earnings,
and the first to involve an investor relations officer.
Regulation FD is intended to prevent issuers from
selectively disclosing material non-public information to
analysts, institutional investors or broker-dealers before the
In the recent action the SEC charged that, during a private
meeting with analysts, Flowserve's CEO...