Netflix Inc. and Chief Executive Officer Reed Hastings said they may face a U.S. Securities and Exchange Commission civil claim over a July Facebook post that coincided with the stock’s biggest gain in almost six weeks.
SEC staff alleges Netflix and its CEO violated rules governing selective disclosure, according to a company filing yesterday. The July 3 post by Hastings said Netflix viewing “exceeded 1 billion hours” of videos in June. The shares rose 6.2 percent that day.
Company executives are increasingly using social media as a tool to communicate with customers and investors. On Dec. 4, Elon Musk, chairman and CEO of Tesla Motors Inc., said on Twitter his electric-vehicle company was cash-flow positive.