2019 Advanced Business Law Institute - Shut Up Shut UP SHUT UP! Dealing with Use of Social Media by Company Personnel
The recent Tesla Twitter fiasco, in which Elon Musk and his company, Tesla, were subject to an SEC fines and penalties following Musk's tweet that he was "considering taking Tesla private at $420.” This program will discuss risks and best practices concerning the use of social media for communicating with existing and potential investors, as well as the need to put in place policies and procedures to address use of social media as part of investor communications and capital raising and the potential liability under the securities laws for improper use of social media by executives, officers, directors, and third-parties. We will also discuss limitations on companies' abilities to regulate what rank and file employees say on social media platforms.