Keeping Tabs On Employee Social Media Discourse

Law360, New York (May 02, 2013, 12:24 PM ET) -- Public companies that choose not to review their social media policies may do so at their peril.

Recently, the U.S. Securities and Exchange Commission concluded an investigation of Netflix and its CEO, Reed Hastings. The SEC’s investigation concerned Hastings’ use of his personal Facebook page to announce that Netflix had streamed 1 billion hours of content in June 2012.

Central to the SEC’s investigation was the following issue: whether Hastings’ post ran afoul of the SEC’s “full disclosure” requirement applicable to material, nonpublic information disseminated by...
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