Beware of Twitter
Companies, like athletes, show business types, and your teenage kids, have been flocking to twitter. Be careful, says Michele N. Anderson, Chief of the Office of Mergers and Acquisitions of the SEC’s Corporation Finance Division. The 140 character limit means there may be no room for required SEC legends, which must accompany certain types of disclosure. Could you hyperlink to the SEC legends? No one knows, but Anderson was not enthusiastic about the idea. Also, Anderson noted that the risk of making a material misstatement or an omission in a tweet could be quite high. So if you’re using Twitter as a means of corporate communication, tread carefully and get your counsel involved.
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