I know about the Madoff case.
Not at all. If evidence comes to light then SGH Directors should by investigated and if found guilty sunbjected to the maximum penalty in law. There has to be evidence though. Cannot say losing $2bn is evidence of criminal act. Continuous disclosure is grey, it largely refers to winning or losing major contracts, executive changes, internal buying and selling. Lying would be covered by a different part of law, I believe.
If continuous disclosure encompassed losses/gains across the board then companies would be reporting a daily stream of activity.
The question is, did BOD have reasonable grounds on which to maintain guidance? I think that is hard to prove that they did not. If a value of work is there wrapped up in WIP it could be argued that converting it owuld have produced the revenue and profit. If an internal whistleblower was to come out and swear that BOD knew the WIP was valued incorrectly and no chance of converting then it would be game on. I suspect it hasn't come out due to nothing to say. They truly believed it would come round but unfortunately it did not.
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