Netflix gets SEC notice over CEO's Facebook post

Published on NewsOK Modified: December 6, 2012 at 10:32 pm •  Published: December 6, 2012
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But Hastings said similar information was disclosed on the company blog in June.

On June 4, the blog states that Netflix's online customers were "enjoying nearly a billion hours per month" of streaming video. That announcement also was not put in a press release or an SEC filing.

It's not the first time a CEO from an Internet company has run into trouble with securities authorities for promoting their company through digital means.

In August 2011, Groupon Inc. CEO Andrew Mason got in hot water for sending a long email to thousands of employees explaining "why I'm so excited" about the company's then-upcoming initial public offering of stock, including a discussion of the company's use of controversial financial metrics.

Mason's email went out after the company had already filed IPO papers with the SEC, after which executives are not allowed to further promote the stock to investors. That episode was resolved and Groupon stock began trading publicly on Nov. 4, 2011.

Netflix shares rose $2.80, or 3.4 percent, to $86.17 on Thursday, a day after the company announced a multi-year licensing deal with Disney. The stock fell $1.06, or 1.2 percent, to $85.11 in after-hours trading.



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