Why Tweets May Not Validate Securities Class Action Liability

By Nessim Mezrahi (April 6, 2022, 4:35 p.m. EDT) — Twitter, as used more recently by some directors and officers of U.S.-listed companies, may not serve as a corporate disclosure mechanism reliable.

Information disseminated via social media platform tweets is not tailored to validate potential class action liability for alleged violations of federal securities laws under Sections 10(b) and 20 (a) the Securities Exchange Act and the rules of the United States Securities and Exchange Commission. 10b-5 promulgated thereunder.

First, recent and well-publicized events involving Twitter provide evidence that the social media platform may not serve as a valid disclosure tool used to disseminate public company communications that may rely on:…

Stay one step ahead

In the legal profession, information is the key to success. You need to know what’s going on with customers, competitors, practice areas and industries. Law360 provides the intelligence you need to stay an expert and beat the competition.

  • Access to case data in articles (numbers, filings, courts, nature of lawsuits, etc.)
  • Access to attached documents such as briefs, motions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and more!