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Washington DC, July 23, 2008 - The Free Enterprise Action Fund (Ticker: FEAOX) submitted the following letter to the U.S. Securities and Exchange Commission (SEC) requesting the SEC to warn publicly-owned companies against making false and misleading statements concerning global warming:
Ms. Florence E. Harmon
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Re: Petition for Interpretive Guidance on Public Statements Concerning Global Warming and Other Environmental Issues
Dear Ms. Harmon,
We are writing on behalf of the Free Enterprise Action Fund ("FEAOX"), a publicly-traded mutual fund, to petition the U.S. Securities and Exchange Commission ("SEC" or "Commission") to issue interpretive guidance pursuant to the Securities and Exchange Act of 1934 ("the Act") that would warn registrants against making potentially false and misleading statements pertaining to global warming and other environmental issues.
We believe the Commission should take action immediately to protect investors.
I. Examples of potentially false and misleading statements made by registrants.
Below are but a few examples of the sort of potentially false and misleading statements being made by registrants. The problematic nature of these statements is discussed in Section II.
* Exelon Corp. issued a media release and placed full-page advertisements in major newspapers on July 15, 2008 stating, "The science is overwhelming -- climate change is happening now and human activity is the primary cause."
* Lehman Brothers issued a report on climate change featuring the so-called "hockey stick" graph to support the notion that humans are causing global warming.
* The General Electric Company issued a "Call for Action" to "slow, stop and even reverse the damage of greenhouse gasses."
* Toyota Motor Corp. states in a report, "When we drive a vehicle, it consumes fossil fuels and emits CO2, a major contributor to climate change."
* Goldman Sachs states in a 2007 report, "By now, the dynamics of global warming are widely known, and we find no reason to dispute the scientific assumptions."
* Caterpillar said in a public statement that, "We must take action now [to reduce carbon dioxide emissions] or risk serious harm to our planet."
All these statements are potentially false and/or misleading as recent events show.
The rest is here.