Opinion ID: 437628
Heading Depth: 2
Heading Rank: 2

Heading: Financial Projection

Text: 14 Two days after the vote on the merger, Sullivan prepared a Pro Forma Income Statement at the request of the stadium lessor. The projection of the Patriots' future income in this statement was substantially more favorable than the information in the proxy statement. Appellants argue that Patriots' management should have revealed these favorable expectations in the proxy statement. We disagree. The federal securities laws do not require corporate management to include speculations about future profitability in proxy statements; in fact, at the time the Patriots proxy statement was issued, the Securities and Exchange Commission frowned on such disclosures. See Lewis v. Oppenheimer & Co., 481 F.Supp. 1199, 1208 & n. 6 (S.D.N.Y.1979). Of course, stockholders may point to specific information in a financial projection as evidence that the management did not disclose all the material facts in its possession; but failure to disclose the projection itself does not establish a Sec. 14(a) violation.