Netflix gets SEC notice over CEO's Facebook post

[Omaha Steve]

Source: AP-Excite

NEW YORK (AP) - Netflix Inc. is facing scrutiny from government regulators for a Facebook post by its CEO in July that may have boosted the online video company's stock price.

Neflix said Thursday that the Securities and Exchange Commission informed it that its staff is recommending civil action be brought against the company and CEO Reed Hastings. The reason: Hastings' July 3 post in which he said Netflix's online video viewing "exceeded 1 billion hours for the first time ever in June."

The SEC says posting on Facebook doesn't amount to fair public disclosure of information that is material to investors.

Shares in Netflix, which is based in Los Gatos, Calif., rose more than 6 percent on the day of Hastings' Facebook post. On the first day of trading following the July 4 holiday, its shares rose another 13 percent.

FULL story at link.


Read more: http://apnews.excite.com/article/20121207/DA30K9E82.html

[Egnever]

1. WTF?

This seems a little silly.

[NYC Liberal]

3. It says you can't selectively disclose material information to only certain people.

In this case, posting on Facebook is apparently considered "selectively disclosure" because it was released only to Facebook users (technically).

The intention of the rule is fine, but things like this do blur the line. I mean it's "public", but only for Facebook users.

[Fearless]

4. It's the same thing to say that it's only open to those who read English if put in a publication

Or only those who read it. It's kind of silly.

[NYC Liberal]

5. I agree. The rule was written in 2000 and should be updated

specifically to reflect social media. A lot has happened in just 12 years.

[Fearless]

6. Very true...

Last edited Fri Dec 7, 2012, 03:19 AM - Edit history (1)

Unfortunately true about a lot of these sort of regulations. Laws move and change very slowly.

[TM99]

8. I disagree

Facebook is not public.

It is a private network that users pay for in the form of advertisements by agreeing to waive security and privacy for social connectedness.

Not everyone by a long shot is on Facebook, nor will they ever be.

[Speck Tater]

7. Instead they should post it in Wall Street Journal

so that only Wall Street Journal subscribers get to find out about it.

What's wrong with that guy letting info like that leak to the peons and riff-raff?

[go west young man]

2. And yet the SEC doesn't go after all the big banks that

have rigged the whole game. Ridiculous.

[JackRiddler]

9. SEC! On the Job As Always!

Says this guy especially:



This one agrees:



:puke