Misstatement

A misstatement is an untrue statement of material fact, or an omission that makes what was said misleading. Half-truths are actionable: the duty is not merely to avoid lying but to avoid creating a false impression.

law and enforcement · updated 2026-10-16

Where does misstatement come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Fake press releases — A fake press release is a fabricated corporate announcement issued through a wire service or a lookalike site, designed to move a share price for the few minutes before the company can deny it.
• Pump and dump — A pump and dump is a scheme in which shares are accumulated cheaply, promoted with misleading claims to drive the price up, and then sold into the demand the promotion created, leaving later buyers with the loss.

Enforcement actions involving these techniques

See also

• Materiality — Information is material if a reasonable investor would consider it important in deciding whether to buy or sell. Materiality is an…
• Rule 10b-5 — Rule 10b-5 is the SEC's general antifraud rule, adopted under Exchange Act section 10(b). It prohibits any device, scheme or artif…

Terms that refer here

Form 8-K · Materiality

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