left-caret
Insights

client alerts

SEC Allows Use of Social Media for Public Company Announcements, but Risks Remain

June 12, 2013

By LEIGH P. RYAN & THOMAS A. ZACCARO

The Securities and Exchange Commission recently issued an investigative report confirming that public companies may use social media, such as Facebook, Twitter and corporate blogs, to announce material non-public information in compliance with Regulation FD – as long as investors and the market have been alerted in advance about the specific channels that will be used to disseminate the information. In light of this new guidance, public companies should review their corporate communications policy, consider whether they want to implement social media disclosure, and if so, take appropriate steps to ensure compliance with Regulation FD and other securities laws and regulations.