Craig Carpenito was quoted in The American Lawyer's Litigation Daily in an article discussing the Netflix CEO’s use of social media and the Securities and Exchange Commission’s (SEC) investigation into whether a message posted on the CEO’s public Facebook page in July violated Regulation Fair Disclosure, a rule that requires all publically traded companies to disclose material information to all investors at the same time.
“To argue that a public posting on [Facebook] isn’t public dissemination will be a challenge for the SEC,” Carpenito said.
Carpenito noted that the SEC should have clarified its stance on social media through its rulemaking procedure, which allows for public notice and comment, before sending a Wells notice. “The proper venue for refining their rules and laying out clear guidelines isn’t an enforcement action,” he said.