Hillel Cohn, a partner in MoFo’s Los Angeles office, discussed Regulation Fair Disclosure (Reg FD) and social media with SNL IR Solutions in an article titled, “Social Securities: How to Make Sense of Reg FD and New Disclosure Channels.”
According to Mr. Cohn, “Trying to stop social media is like trying to stop the ocean’s tides from coming in, so you have to figure out how to use it responsibly and safely. First and foremost, companies have to consider whether social media fit the nature of their business.”
If they do, Mr. Cohn recommends the following:
- Set up a social media policy that permits official corporate communication to be conveyed through specified social media accounts, not personal accounts;
- Ensure that social media communications are consistent with other public statements;
- Determine whether disclaimers are necessary, such as forward-looking statements;
- Identify someone who will monitor social media communications; and
- Avoid misleading language.