In yet another example of potential litigation due to Social Media, CNN Money has reported that Netflix CEO Reed Hastings is under investigation from the SEC for making a posting that Netflix customers were viewing more than 1 billion hours of video content a month.
The posting was widely reported and Netflix stock rose 13% the day of the posting.
On Thursday, Netflix disclosed in a new posting, an SEC filing and a news release that Hastings and the company received a Wells Notice from the SEC. The notice says the agency staff will recommend regulators institute a cease-and-desist proceeding and/or bring a civil injunctive action for violations of the agency’s fair disclosure rules.
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