The Securities and Exchange Commission last week gave its quasi-blessing on disclosure through social media, but lawyers who counsel companies on disclosure of material information say it’s unlikely to quickly change the way most companies do so.
The SEC said companies can use websites including Facebook and Twitter to disclose information as long it is in compliance with Regulation Fair Disclosure and that investors know ahead of time where to look. That last part, said Thomas Ivey, a corporate and securities attorney with Skadden, Arps, Slate, Meagher & Flom, will be a challenge. "It will be difficult to train investors to look beyond the usual spots for disclosure."
