Why It’s Dangerous To Even Say “Trade Secret” In A 10-K

A recent study has found that companies mentioning the existence of trade secrets in their 10K filings are 30 percent more likely to become the target of a cyber-attack. Within that 30 percent, the likelihood is even greater for certain sub-categories of companies, including younger companies and companies with fewer employees. Companies, for example, may mention “trade secrets” in the context of discussing measures they take in order to protect them, e.g. non-disclosure agreements. Perhaps, suggests Dallas attorney Leiza Dolghih, this information doesn’t need to be in an SEC filing (or a PR release), and there is a better way to convey it to shareholders.