SEC Suit Over Netflix Facebook Post Faces Long Odds In Court

Law360, New York (December 7, 2012, 6:30 PM EST) -- The U.S. Securities and Exchange Commission is threatening to sue Netflix Inc. and its CEO over a Facebook post disclosing company information before a stock surge, but experts say the agency will struggle to prove the missive violated federal securities laws if the matter winds up in court.

Netflix disclosed Thursday that it and CEO Reed Hastings received a Wells notice from the SEC indicating the agency is weighing a civil fraud action. The allegations stem from Hastings’ July Facebook post revealing that Netflix members had...
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