Prosecutors acknowledged what he posted was true but invoked the SEC's RegulationFD to argue this was a material disclosure being selectively disclosed.
Facebook intends to use the investor.fb.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under RegulationFD.
U.S. regulators also subpoenaed Avon last October over its contact with analysts and others as part of an investigation related to fair disclosure under RegulationFD.
Facebook and Twitter to announce key information in compliance with Regulation Fair Disclosure (Regulation FD) so long as investors have been alerted about which social media will be used to disseminate such information.
The investigation that the SEC called-off was predicated on whether Netflix and Hastings violated RegulationFD when Hastings used his personal Facebook page to announce that Netflix had streamed one billion hours of content in June 2012.
Traditionally, issuers complied with RegulationFD (which was intended to prevent issuers from selectively disclosing important information to securities analysts and institutional investors before it was made known to the general public) by disseminating press releases that simultaneously were filed with the SEC.
The Securities and Exchange Commission today issued a report that makes clear that companies can use social media outlets like Facebook and Twitter to announce key information in compliance with Regulation Fair Disclosure (Regulation FD) so long as investors have been alerted about which social media will be used to disseminate such information.