Pitfalls of Social Media: Facebook Post Could Lead to SEC Enforcement Action

Summary: Social media postings by officers of public companies can form the basis of Securities and Exchange Commission (SEC) enforcement actions. Last week, the SEC issued a Wells notice to Netflix, Inc. and its CEO related to a Facebook post made by the CEO in July that may have violated Regulation Fair Disclosure (FD). The SEC said that the company may face a cease and desist proceeding or civil injunctive suit.