Chadbourne & Parke

US SEC provides Regulation FD guidance on use of social media

On 2 April 2013, the Securities and Exchange Commission (SEC) issued new guidance permitting companies to use social media such as Facebook and Twitter to disclose material information provided that investors are first alerted to the social media sites that will be used. The guidance was published in a report of investigation stating that the SEC would not institute an enforcement action against Netflix following an investigation concerning whether Netflix and its chief executive officer, Reed Hastings, violated Regulation FD.

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