(Reuters) – Sports activities betting firm DraftKings (NASDAQ:) has agreed to pay a $200,000 penalty for selectively disclosing materials private info on social media accounts fairly than to all traders, the U.S. Securities and Trade Fee introduced on Thursday.
In posts on X and LinkedIn in July of final 12 months, the corporate’s public relations agency boasted of DraftKings’ “robust progress” although the corporate had not launched its second-quarter monetary outcomes, in keeping with the SEC.
The corporate then requested for the posts to be deleted however didn’t disclose related info to all traders for every week, the company stated in a press release.
“It’s important that, when corporations disseminate materials, private info, they achieve this pretty to all traders,” John Dugan, affiliate enforcement director within the SEC’s Boston workplace, stated within the assertion.
In the event that they select to make use of social media accounts to launch key info, corporations should inform traders upfront as to which social media accounts will probably be used, in keeping with the SEC.
Representatives for DraftKings didn’t instantly reply to a request for remark.