Securities enforcement defense is a significant part of our practice. Last month we saw an important development in the application of securities law to social media. For the first time, the Enforcement Division of the SEC issued a Wells Notice based on a social media communication. We covered the news and the interaction of the securities laws and Facebook when the story broke. On the surface, this doesn't appear to be much of a Reg FD issue, given the prior release of the information, and the vast following that Netflix's CEO has on Facebook.
But it does raise a number of interesting questions. Even more if you are a securities defense attorney who is a computer-geek-wannabe and something of a social media expert.
The Harvard Law School Forum on Corporate Governance and Financial Regulation examines the issue and the potential for liability arising from disclosures by corporate officers through social media in its article
Applying Securities Laws to Social Media Communications