SEC Provides Guidance on the Use of Social Media to Disseminate Investor Information

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On April 2, 2013, the Securities and Exchange Commission issued a report clarifying existing guidance to confirm that public companies may use social media outlets, such as Facebook and Twitter, to announce key information in compliance with Regulation FD of the Securities Exchange Act of 1934, so long as investors have been alerted in advance about which social media outlets will be used to disseminate such information.

Background on Regulation FD and 2008 SEC Guidance on Use of Company Websites -

Adopted in 2000, Regulation FD prohibits public companies from making selective disclosure of material, non-public information to select individuals before such information is made available to the general public. Generally, it requires that companies disclose material information by filing a Form 8-K or in another manner that is reasonably designed to “achieve effective broad and non-exclusionary distribution” to the public.

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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.

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