Unfortunately, diplomatic efforts to prevent Russia’s invasion of Ukraine did not prevail, and the conflict continues. Although we don’t wish to overlook or dismiss the pain and suffering that is attendant to war, and while we hope for a quick, safe resolution, there are and will continue to be unintended consequences that stem specifically from the invasion and generally from the destabilization in global affairs. At this time, you and your organization should be mindful of, among other things, the following:

• Do we need to revisit our Risk Factors (especially if you have released earnings and already filed your Form 10-K)? Do we need to expand upon (with specificity) our Risk Factor disclosure if the conflict in Ukraine poses a material threat to our business and operations? Do we need to address this situation in the “Business” section of our Form 10-K?
• Are our cyber defenses hardened? Are they sufficient? Have we alerted our employees to be especially vigilant during these times? Are we prepared should we experience an attack? What is our immediate action plan in the wake of any such attack?
• Are we prepared to respond if a key vendor suffers an attack? What alternatives are on the table should one of our business partners experience a disruption, or worse, a shutdown, due to its operational ties to Russia?

Because events continue to unfold, we will continue to monitor the situation and provide necessary updates. In the interim, if you have immediate disclosure needs or wish to assess your cyber defenses and response planning, please contact the authors of this blog or your regular Nelson Mullins contact.

Authors vary, but SECurities in a SECond is edited by Erin Reeves McGinnis and Wes Scott.

For more information on the securities practice group and its attorneys, click here.

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