Netflix company said on Thursday, securities regulators warned that they may be in violation of public disclosure rules and the position of Facebook, the company and its chief executive file a civil lawsuit cases, to improve the listed company communication, social media.
The silicon valley's CEO, reed Hastings, rejected the contention, and said that he did not think that the position of Facebook is "important" information.
Hastings in the company's public Facebook page wrote: on July 3 "Netflix monthly to watch for the first time in June, breakthrough hours." This position is more than 244000 users visit the page.
Netflix company received is called a from the United States securities and exchange commission, the United States securities and exchange commission staff would suggest carte Blanche pursuit of suspected of violating the ceasefire and stop action and/or civil injunctions to Netflix and Hastings, know the stone.
The company may have Netflix operation breaking the United States securities and exchange commission regulations of FD, passed in 2000, it requires that the listed company of comprehensive, fair and public disclosure of important private information.
"We think, post to more than 200000 people, are very open, especially me, because a lot of users are journalists and bloggers," Hastings said on Thursday, in the letter. He also said he did not believe in Facebook issued a "major" information.
The United States securities and exchange commission that this number should have in a press release or submit regulatory file disclosure, according to Hastings letter is material information.
"We are still very optimistic, it can rapidly through the United States securities and exchange commission review process is clear, Hastings said:" in an open letter to the shareholders, online streaming video media company submitted a regulatory document reference "know, stone", from the United States securities and exchange commission received in together.
From Netflix's shares rose $67.85 on July 2, share the Hastings, on July 5, $81.72. July 25, the price of the stock fell by 22% in the second quarter, the company reported earnings fell $6.2 million from the same period last year, $68200000 $60.28 this year.
"This is completely false said, his statement is not material, stock prices are down from $70 a share to more than 8000 points, the only data is then said," Wedbush securities analyst Michael palmer chet.
Supervision of gray area?
However, the law and securities experts say, rapidly changing world of the social media supervision gray area set aside space.
"Social media is put forward the development of the SEC some very interesting regulatory challenges, but if they worry about social media, there are ways to solve the problem for them and threatened to Sue reed Hastings, they should have a rule set, where they can ventilation these problems, said:", Joseph glen phillips,,, before the United States securities and exchange commission committee member and professor at Stanford university law school.
"This kind of situation has not do this regulation FD purpose is to solve the problem.
Joseph marrow, Waltham, Massachusetts law firm lawyers Morse Barnes, brown said pendleton, what is disclosed in such cases conflicting points of view, and points out that in this rule is not sure.
"I wouldn't suggest the company posted on Twitter and Facebook of the major private information, and not to talk about it before the legal adviser. The social media policy," he said.
"If Netflix company no policy, I bet they will have a very fast," he said, to join problem is unlikely to serious enough to threat of Netflix CEO Hastings position, but may cause some type of financial the company's fine.
In the subsequent after-hours trading, Netflix shares fell 1.4% to $85, on Thursday.
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