(In penultimate paragraph, amends Facebook post to July, not
June; viewers watching more than, not "nearly," one billion
hours of video)
SAN FRANCISCO Dec 6 Netflix Inc said
securities regulators plan to take action against the company
because of a Facebook post by Chief Executive Reed Hastings that
violated public disclosure rules, even as Hastings dismissed the
contention in a public letter to shareholders on Thursday.
"We remain optimistic this can be cleared up quickly through
the SEC's review process," said Hastings, in the letter the
company submitted alongside a regulatory filing announcing the
receipt of a "Wells Notice" from SEC staff.
The notice informed Netflix that the SEC intends to bring a
civil action against the company because of comments Hastings
made on Facebook in July announcing that members of the online
video streaming service were watching more than one billion
hours of video a month.
Hastings said on Thursday that he did not believe the
Facebook posting was "material" information.
(Reporting by Alexei Oreskovic; Editing by Dan Grebler)