In April of last year, the SEC issued a report stating that companies can use social media outlets like Facebook and Twitter to announce material information in compliance with Regulation Fair Disclosure, just as long as they alert investors about which social media channels will be used to disseminate such information.
The news was a relief to Netflix chief executive officer Reed Hastings, whose Facebook post from July of 2012 announcing that the company had streamed 1 billion hours of content during the prior month had prompted an investigation and the subsequent report. In a press release announcing the report, the SEC stated that it “did not initiate an enforcement action or allege wrongdoing by Hastings or Netflix.”
