SEC brings Regulation FD enforcement action for selective disclosure via social media

On September 26, the SEC announced that it had charged public company DraftKings Inc. with violating Regulation FD, or “Fair Disclosure,” under the Exchange Act. The SEC alleged that the company selectively disclosed material nonpublic earnings information to investors via social media outlets and, upon learning of this non-intentional disclosure, failed to make prompt disclosure of the information to the public as required by Regulation FD.