SEC: Facebook Friends Can Benefit

The SEC issued a release today confirming that companies can use social media outlets like Facebook, Twitter, and LinkedIn to announce information in compliance with Regulation FD (“Reg FD”) so long as investors have been alerted in advance about which social media will be used to send the information.

The SEC’s release grows out of an inquiry involving the CEO of a major Internet television network. The CEO posted on his Facebook page that his company’s online viewing had exceeded a key milestone for the first time. His Facebook statement was not accompanied or preceded by any company press release or 8-K. The stock jumped substantially, and the SEC came knocking.

The SEC’s release confirms that companies are permitted to announce material news through social media, provided investors know when and where to expect it. In response to the SEC’s latest release on Reg FD, we expect that public companies will update their social media protocols and, as appropriate, integrate investor relations communications more closely with links to sites like Facebook, Twitter and LinkedIn.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick - Securities Litigation and Regulatory Enforcement Group | Attorney Advertising

Written by:


Orrick - Securities Litigation and Regulatory Enforcement Group on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.