"SEC Clarifies Regulation FD Requirements for Issuer Disclosure of Material Nonpublic Information Through Social Media Channels"

With the explosive growth of social media as a tool for businesses to communicate with employees, customers, vendors and other constituents, it was only a matter of time before the Securities and Exchange Commission ("SEC") weighed in on the disclosure of information by public companies through social media.  The SEC provided useful guidance on this issue this month.  This Stroock Special Bulletin examines the SEC's guidance, which makes clear that issuers and persons acting on an issuer's behalf may disclose material nonpublic information through social media and still comply with the SEC's fair disclosure rules set forth in Regulation FD, so long as they adequately alert the public in advance that they may make disclosures in this manner.