Securities Law, Social Media, and Disclosure Risks
On July 3, 2012, the chief executive officer of Netflix Inc., Reed Hastings, did what many of us frequently do: He updated his Facebook account. However, he updated his account with a post stating that Netflix viewing "exceeded 1 billion hours" in the month of June 2012. This post was viewable by more than 200,000 Facebook users. Netflix Inc.’s shares rose 6.2 percent that day, the largest single-day gain in approximately six weeks.
This article was reproduced with permission of the publisher from World Securities Law Report Vol. 19, No. 3, March 2013.