Recovering from an SEC press release

5 Tips for Recovering from an SEC Press Release

When the SEC publishes a press release that’s critical of your company, it can harm your reputation. It’s often picked up by news outlets and reported on, leading to investors and customers losing confidence in the company. Sometimes, it even causes share prices to drop.

This is in addition to the stakeholder exodus caused by the press release itself.

Ideally, any company under investigation by the SEC must be aware of the potential consequences and take proactive measures to protect its reputation.

Nevertheless, even if some damage has already been done, it’s not too late to make things right.

5 Tips for Recovering from an SEC Press Release  

The SEC’s press release has put your company in a negative light, and it’ll take some work to recover from that. But it is possible to repair the damage to your reputation with these tips.

1.   Address the Problem Directly

First and foremost, you should make a public statement (vetted by your legal and PR teams) in response to the SEC’s press release. Acknowledging the SEC’s findings shows that you’re aware of the situation and taking it seriously. It can help reassure investors and customers that you’re committed to transparency and doing business ethically.

More importantly, outline the steps you’re taking to remedy the situation. This will show that your company is taking responsibility for its actions and is committed to making things right.

2.   Be Transparent

Transparency is key in rebuilding trust after a crisis. Your company should be open about what went wrong and what it’s doing to fix the problem. This may include changing business practices, implementing new policies and procedures, or taking other corrective measures.

Don’t forget to keep stakeholders updated on the progress to win back their trust.

3.   Launch Positive PR Campaigns

SEC’s press release will likely display on top of the page when searchers enter your company name in the search bar. While you can’t do anything to delete it, you can certainly push it to the background by publishing positive news and content about your business.

Bring in your SEO team to optimize all articles and web pages that currently appear on the second page. Apart from this, you must pause all traditional PR activities as it’ll only attract more journalists.

4.   Communicate Effectively

In addition to communicating your plans for addressing the problem and restoring trust to all stakeholders, you should be prepared to answer any questions regarding the contents of the press release.

Don’t try to be defensive or play the blame game, as it’ll only spark controversies. The goal is not to hide or deny the news. Only by acting swiftly and taking ownership will you be able to control the story. It becomes less newsworthy when it comes directly from you.

That said, make sure all investor questions are directed to one person. Inconsistent messaging will be the final nail in the coffin.

5.   Be Patient

Rebuilding trust after an SEC press release takes time. You’ll have to be patient and continue to focus on your long-term goals while keeping all stakeholders updated on progress and being open to their feedback.

Final Words

The SEC’s press release may have been critical of your company, but you have a chance to recover.

By taking the above steps, you can begin to repair the damage to the company’s reputation. It’ll take time and effort, but that’s how you pay to recover from this type of setback.

If you deem it necessary, you can seek help from a reputation management firm to get back on track and regain the trust of your shareholders and stakeholders. A team of experienced reputation management specialists will help you navigate this difficult time.

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