Why Tweets May Not Validate Securities Class Action Liability
By Nessim Mezrahi (April 6, 2022, 4:35 PM EDT) -- Twitter, as it has been utilized more recently by some directors and officers of U.S.-listed companies, may not serve as a trusted corporate disclosure mechanism.
The information disseminated via the social media platform's tweets are ill-suited to validate potential class action liability from alleged violations of the federal securities laws under Section 10(b) and 20(a) of the Securities Exchange Act and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder.
First, recent and well-publicized events involving Twitter prove that the social media platform may not serve as a valid disclosure tool used to disseminate public company communications that may be relied upon by:...
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