On July 3, 2012, the CEO of Netflix Inc. did what many of us frequently do: updated his Facebook account. However, he updated his account with a post stating that Netflix viewing “exceeded 1 billion hours” in the month of June. This post was viewable by over 200,000 Facebook fans. Netflix Inc. shares rose 6.2% that day, the largest single day gain in approximately 6 weeks.
Shortly thereafter, the Securities and Exchange Commission (“SEC”) provided Netflix and the CEO with a “Wells Notice”, a notice the SEC provides when it is of the opinion that sufficient wrongdoing has … Continue Reading