Green Building Representations and the Emerging Potential for Securities Fraud Liability

  • October 17, 2008
  • • Written by: Brian D. Anderson, Esq.

Fall 2008 Vol 33, No 3 features

Abstract: All public companies are required to file detailed disclosures on their activities with the United States Securities and Exchange Commission (SEC). A growing number of those companies are investing in green building practices and certification. An informal survey of recent securities filings citing to the United States Green Building Council (USGBC) and USGBC’s certification program, the Leadership in Energy and Environmental Design (LEED®), reveals that some filers are including potentially inaccurate or unqualified statements regarding the benefits of green building practices and/or LEED certification. Such inaccurate or misleading statements may give rise to liability under the anti-fraud provisions of federal securities laws.