Philadelphia partner Mary Hansen was quoted in a Law360 article titled “Musk Twitter Gaffe Shows Need for Stronger Board Oversight.”

The SEC’s recent—and swift—settlement with Tesla Inc. CEO Elon Musk has drawn considerable attention to potential pitfalls for companies and executives in making public comments. Mary observed that “[t]he important takeaway here is that companies need to have policies and procedures with respect to public statements, regardless of where [such statements are issued].”

In light of the fact that the settlement centered on misleading statements Musk made on his Twitter account, Mary suggested that if a tweet has the potential to impact the market, it should be treated like a press release, and encouraged companies to create policies to govern social media accordingly. She also emphasized the importance of truthful communications from company leadership, saying that “[i]f the CEO makes false and misleading statements, it doesn’t matter what the medium is, whether it’s in 8Ks, 10-Qs or Twitter.”

Read “Musk Twitter Gaffe Shows Need for Stronger Board Oversight.”

Source: Law360
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