Companies have a lot of leeway when it comes to the disclosure of Wells notices from the SEC, which is a formal notice that the SEC (SEC news) is considering bringing civil charges against them.

The issuance of such a notice does not guarantee that charges will be filed, notes the New York Times. And in many cases, the notice leads to a settlement. Goldman Sachs (NYSE: GS) chose not to disclose to shareholders that it had received a Wells notice regarding the SEC's investigation of practices related to a single CDO (CDO news).

On the other hand, Moody's did disclose that it had received such a notice, one that related to an SEC probe into potentially "false and misleading" statements issued in a 2008 filing. The news led to a quick sell-off.

So how should companies handle this? The decision is really up to corporate management and the board, as the rules are vague on whether such information is material. And the New York Times notes that "no company has even been found in violation of the disclosure rules for not" disclosing a Wells notice. If you do decide to disclose, you have to worry about a lot of issues. Quick disclosure may be the best bet.

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