8 Press Release Mistakes That Damage Credibility and Investor Trust

Communicating clearly and compliantly is harder than ever. Companies are under increasing pressure to move quickly, meet disclosure obligations, and engage investors, all while avoiding legal and reputational risk. With so many moving parts, it’s easy to make press release mistakes.

In 2024, the SEC secured $8.2 billion in financial remedies, the highest amount in its history. This total came from enforcement actions, including cases against public companies accused of making misleading statements.

The message is clear. Even routine communication, when poorly executed, can raise red flags.

Here are eight common press release mistakes that still catch companies off guard, and how to prevent them.

A Framework for Avoiding Critical Press Release Mistakes

Use this framework as a quality check to help your team avoid common press release missteps that can impact credibility, investor trust, and regulatory perception.

Explore the 8 Mistakes:

1. Lacking a Material Angle

2. Burying the Headline

3. Failing to Frame the Narrative

4. Inconsistent Messaging

5. Poor Timing

6. Promotional Tone

7. Weak Formatting & Multimedia

8. Copy-Paste Errors

1. The “So What?” Release: Lacking a Material Angle

The single biggest mistake is confusing "activity" with "news." When you issue a release for a non-material event, you create "alert fatigue." You are actively training your most important audiences to ignore you, which means when you have truly critical news, it risks getting lost in the noise.

• Example: You wouldn't issue a release for paying your office rent. So why issue one for something that has a similarly negligible impact on an investor's valuation of your company?
  

• The Fix: Before writing, ask the critical question: "Could this information realistically cause an investor to change their position on our stock?" If the answer isn't a clear "yes," use a different channel.
  

  
  

2. The “Mystery” Headline: Burying the Lead

Many of your readers may not read past your headline and first paragraph. On top of this, there are trading algorithms that analyze news in microseconds. A vague headline forces readers to hunt for the news and this is a time luxury no one has.

• Example:

  • Weak - InnovateCorp Announces Q3 Developments

  • Strong - InnovateCorp Reports 15% Revenue Growth in Q3, Raises Full-Year Guidance

• The Fix: Your headline must state the most material fact or newsworthy event. Your opening sentence should summarize the who, what, and why. Don't make an investor guess.
  

3. The "What, Not Why" Report: Failing to Frame the Narrative

This is a sophisticated but common mistake. The release states what happened (e.g., an acquisition) but fails to explain why it matters to your company's strategy. Investors need context. Without it, they are left to draw their own conclusions, which may not align with your vision.

• Interesting Insight: This is where a strong executive quote becomes invaluable. Instead of just repeating facts, a quote should frame the strategic narrative: "This acquisition accelerates our entry into the European market by two years and is a critical step in our mission to..."

  
  

• The Fix: For every major announcement, explicitly articulate its strategic importance. Connect the dots for your audience and show them how this news fits into your company's larger story.

4. The “Mixed Signals” Mistake: Creating Narrative Inconsistency

When your press release boasts about a record number of user sign-ups, but the MD&A in your quarterly report cautions about slowing revenue per user, you create a narrative conflict.

Investors and regulators can spot these disconnects, and they are unforgiving. These disconnects signal poor internal controls or, worse, an attempt to mislead.

• The Fix: Ensure absolute alignment between your press release, regulatory filings, social media, and executive commentary. Your CFO, legal counsel, and Head of IR must work together on the same team.

5. The "Poorly Timed Drop": Ignoring Market Dynamics

When you release news can be just as important as what you release. There are valid reasons to issue press releases during market hours but timing still requires careful consideration.

Releasing material news late on a Friday afternoon may be perceived by investors or analysts as an attempt to downplay or bury information. Even if unintentional, this can raise questions about transparency and undermine trust.

Being deliberate and strategic with timing helps preserve credibility and market confidence.

• The Fix: Unless disclosure timing is dictated by regulation or filing deadlines, consider issuing major market-moving news either before markets open or after they close. This allows investors, analysts, and the media time to absorb and interpret the information in a more stable environment.
  

6. The “Promo Brochure”: Adopting a Sales Tone

Your press release is a document of record, not a marketing brochure. A promotional tone instantly erodes credibility with financially savvy audiences and can even undermine the legal protections of your "safe harbor" statement for forward-looking information.

In addition, media feeds typically have rules against accepting promotional press releases.

• The Fix: Stick to objective, third-person language. Let the facts and milestones speak for themselves. Swap promotional adjectives for quantifiable data.
  

7. The “Wall of Text”: Forgetting Modern Readability and Multimedia

No one will read a dense, 800-word block of text. Poor formatting is not just an aesthetic issue; it can hinder comprehension. Modern releases are scannable and interactive.

• Example: Instead of just describing a positive trend, embed a simple chart. Instead of just mentioning a new project, link to its landing page. Always end with a clear call to action (e.g., a link to the IR website or webcast).

  
  

• The Fix: Use short paragraphs, clear subheadings, and bullet points. Always include your logo and enrich the release with relevant links, graphics, or even video.

8. The “Copy-Paste Crisis”: Small Errors, Big Damage

A typo in a financial figure or a misspelled name is the fastest way to destroy the credibility of your entire message. These small errors suggest a lack of attention to detail at the highest levels and can cause your audience to question the validity of everything else in the release.'

• The Fix: Institute a mandatory, multi-person review process. The person who wrote the release should never be the final approver. Always double-check names, titles, and every single number, and ensure your boilerplate and legal disclaimers are current.