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CORRECTED-Netflix says CEO comments triggered SEC action
December 6, 2012 / 10:35 PM / 5 years ago

CORRECTED-Netflix says CEO comments triggered SEC action

(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 (Reuters) - 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)

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