Netflix CEO Reed Hastings is under investigation by the US Securities and Exchanges Commission (SEC) over comments he made on the company’s official Facebook account.
In July, Hastings posted a comment on Facebook celebrating the fact that consumers had watched over one billion hours of content through the online video giant’s services the previous month.
However, according to GigaOM, the SEC alleges the news constitutes a “material event” that had a material impact on the company’s share price.
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The SEC also claims that posting the news on Facebook rather than announcing it through a “non-exclusionary” method, such as a press release or traditional media outlet, did not give all investors an equal opportunity to react to the news.