Netflix Warned About Possible SEC Action Over Facebook Post

Netflix disclosed in a filing with the Securities and Exchange Commission today that the commission had warned the company and CEO Reed Hastings that it may bring a civil case against related to disclosures Hastings made about the state of the company's business on his Facebook page.

Netflix disclosed in a filing with the Securities and Exchange Commission today that the commission had warned the company and CEO Reed Hastings that it may bring a civil case against related to disclosures Hastings made about the state of the company’s business on his Facebook page.

The SEC warned Netflix in a letter yesterday that its social media strategy may put it afoul of regulations governing fair disclosure of financial information.

Hastings explained:

We use blogging and social media, including Facebook, to communicate effectively with the public and our members.

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