Public companies are beginning to cautiously adopt social media as a disclosure channel. This area has experienced substantial changes lately as the SEC moved from a posture of threatening action against Netflix’s CEO for a post he made on his personal Facebook page to adopting a more relaxed and expansive position. This was really just… Continue Reading
Tag Archives: Regulation FD
SEC relaxes restrictions on social media postings (but Regulation FD still applies)
Posted in Disclosure GuidanceThe SEC tiptoed into the twenty-first century as the agency validated the use of social media sites in certain situations for disclosure of information by publicly traded companies. This social media disclosure is subject to some constraints, but it is a positive move for public companies, shareholders and potential investors who are social media users. … Continue Reading
Securities Law 101 (Part III): Watch your mouth! Regulation FD’s impact on (selective) disclosure
Posted in Disclosure GuidanceThis is the third part of our Securities Law 101 series. Because capital raising is such a critical function for middle market companies, we designed this series to introduce their management teams to some of the fundamental concepts in securities law. We hope that this series will prevent some of the most common mistakes management… Continue Reading
Video Interview: Discussing the Regulation FD concern with Netflix over Facebook post on LXBN TV
Posted in Disclosure Guidance, Technology Company IssuesFollowing up on my post on the subject, I had the chance to speak with Colin O’Keefe of LXBN regarding the SEC sending a Wells notice to Netflix and its CEO over a Facebook post the latter made. In the interview, I explain what happened, why the SEC is displeased and why it needs to… Continue Reading
Netflix CEO’s Facebook post leads to possible Regulation FD action by SEC – Time for some changes
Posted in Disclosure Guidance, Technology Company IssuesThe use of social media as a public company information channel encountered a roadblock on December 5, 2012 as Netflix, Inc. and its CEO, Reed Hastings, both received Wells notices from the SEC regarding a prior Facebook post that Mr. Hastings had made. A Wells notice is a notification from the SEC that it intends… Continue Reading
Careful with that tweet! Social media considerations for public companies
Posted in Disclosure Guidance, Technology Company IssuesSocial media use has experienced a meteoric rise. According to Tweetsmarter (a social media blog), the top five social media sites (Facebook, Twitter, LinkedIn, Google+ and Pinterest) have 1.8 billion users. Many companies have also embraced social media use as a cheap and efficient channel for the dissemination of information. Good examples here include Best… Continue Reading
Did Apple violate Regulation FD at its iPhone 5 release conference?
Posted in Disclosure GuidanceOn September 12, 2012, Apple, Inc. held a highly anticipated conference at which it announced the upcoming release of the latest model of the iPhone. These types of conferences have been part of Apple’s standard operations for many years and seem to be a key element of its marketing strategy. Although attendance is limited to… Continue Reading