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Netflix says CEO's Facebook post triggered SEC notice over disclosure

Dec 07 2012 Ronald Grover, Reuters

Netflix Inc said on Thursday securities regulators warned they may bring civil action against the company and its chief executive for violating public disclosure rules with a Facebook post, in a case that raises questions about how public companies communicate on social media. The high-profile Silicon Valley CEO, Reed Hastings, dismissed the contention and said he did not believe the Facebook post was "material" information. Hastings wrote in the post on the company's public Facebook page on July 3: "Netflix monthly viewing exceeded 1 billion hours for the first time ever in June." The post was accessible to the more than 244,000 subscribers to the page. Netflix received what is known as a Wells Notice from the U.S. Securities and Exchange Commission, which means the SEC staff will recommend the full commission pursue either a cease-and-desist action and/or a civil injunction against Netflix and Hastings over the alleged violation. Netflix may have fun afoul

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