Section 409: Real Time Issuer Disclosures

SOX section 409 states: “Issuers are required to disclose to the public, on an urgent basis, information on material changes in their financial condition or operations. These disclosures are to be presented in terms that are easy to understand and supported by trend and qualitative information of graphic presentations as appropriate.”

This can force companies to disclose things they might prefer not to publicize, such as a data breach or other cyberattack that has an impact on operations.