Philadelphia partner Mary Hansen was quoted in a Compliance Week article titled “Three Compliance Lessons from Elon Musk’s SEC Deal.” Musk, the high-profile founder and CEO of Tesla, has agreed to a settlement with the SEC in an enforcement action that stemmed from information Musk dispersed via his Twitter account that was, according to the SEC, “false and misleading.”

Mary emphasized the need for executives and compliance officers to proceed with caution when using social media. “It really is fairly simple. You can’t have CEOs out there making false statements, regardless of what form they take—written, oral, Twitter, Facebook, or whatever,” she says. “Not that compliance officers’ jobs aren’t hard enough already, but when you have someone like [Musk] you need to step up your compliance efforts and explain that they are going to get in trouble…There are real consequences and real-time consequences. If I am a compliance officer, I’m using this case to say, ‘Look, this is serious.’ This is not something you can ignore or say, ‘It is not a big deal, it is just Twitter.’”

Source: Compliance Week
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