Public statements during an investigation

An organisation facing a public allegation must communicate, and every statement carries legal consequence.

Accuracy above speed. Statements that prove inaccurate cause more damage than a delayed response. Say what is known, say that the matter is being investigated, and avoid conclusions about facts not yet established.

Do not deny prematurely. A categorical denial issued before the investigation concludes is the most common and most costly error. If it later proves wrong, the denial itself becomes the allegation — including, for public companies, a potential securities claim.

Consistency across audiences. Employees, customers, regulators, lenders, insurers and the market must receive consistent messages. Inconsistency is discovered and characterised as concealment.

Employee communications are discoverable and are frequently the most candid documents in the case. Draft them with that in mind, without making them evasive.

Privilege. Communications with public relations advisers are generally not privileged unless the adviser is engaged by counsel to assist in providing legal advice, and even then protection is uncertain. Assume they are discoverable.

Disclosure obligations. Securities disclosure, contractual notification to counterparties and lenders, insurance notice, and regulatory reporting each have their own triggers and timelines that must be assessed at the outset.