• SEC Guidance on Disclosure Through Social Media: Like Websites, Social Media Can Be a Regulation FD-Compliant Means of Broad Dissemination But Only If the Company Has Taken Steps to Establish It as a Recognized Channel of Distribution; Companies Using Social Media Should Remain Mindful of Antifraud and Other Regulatory Concerns
  • April 10, 2013
  • Law Firm: Sullivan Cromwell LLP - New York Office
  • On April 2, 2013, the Securities and Exchange Commission issued guidance confirming that the disclosure by public companies of material non-public information through social media channels, such as Facebook and Twitter, is governed by the principles outlined in the SEC’s 2008 guidance on website disclosure - specifically, that social media can be a Regulation FD-compliant means of broad dissemination but only if the company has taken adequate steps to alert the market that it intends to disclose such information through that channel. It is therefore important to note that if the company has not adequately alerted the market that it will disclose material information through a social media channel, then disclosure of material non-public information through that social media channel will be selective disclosure in violation of Regulation FD.