Chip maker Intel will no longer make forecasts about its expected profits if a controversial piece of Californian legislation is passed next month.
The company has cancelled its planned analysts meeting, which should have taken place at the end of this month, and is moving to limit any possible future damage.
Proposition 211 will make it easier for shareholders to sue public companies should their actual results turn out to be worse than forecast.
In effect the proposition will remove the notion of limited liability from such companies. It could become Californian law on 5 November - after the presidential elections.
Intel has come out against the proposed legislation, saying that it is a danger to business as well as a threat to the state's economy.
In the past, Intel, like many other companies, has made information about its future prospects widely available.
But this practice will stop if Proposition 211 is passed, as any shareholders who feel they have been misled by forecasts will be able to take legal action against the company - a likely prospect, given the generally litigious nature of the US.
Andrew Grove, president of Intel, said: 'What's wrong with Southern California's entrepreneurs? Why aren't they out working against Proposition 211 as we are?'
3Com is displaying a 26ft banner saying 'No to Prop 211' on the side of its Santa Clara headquarters.
Eric Benhamou, CEO of 3Com, has sent an email on the subject of Proposition 211 to all Californian employees of the company. In it he calls for all of them to get involved in the debate.
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