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Netflix' CEO Receives Wells Notice, SEC Alleges "Reg FD" Violation
The antics of the world's most cartoonish CEO, that would be NFLX' Reed Hastings of course, who once upon a time posted on Seeking Alpha telling naysayers not to short him bro, (only to continue selling his company's stock even as NFLX proceeded to use corporate money to buyback NFLX stock in the $200+ area in effect funding Hasting's own personal bank account), before promptly collapsing to multi-year lows, has finally been called to task by none other than that other most cartoonish of organizations: the SEC, which is now desperate to clean up its image as the bulk of the most coopted personnel are jumping ship, and will likely end up in various Wall Street companies.
- NETFLIX, CEO RECEIVED WELLS NOTICE FROM SEC STAFF
- NETFLIX CEO SAYS SEC STAFF QUESTIONED FACEBOOK POST
- NETFLIX CEO SAYS SEC STAFF RECOMMENDS CIVIL ACTION
- NETFLIX CEO SAYS SEC STAFF CITES 'REG FD' VIOLATION
- NFLX SAYS DOESN'T USE FB TO GET MATERIAL INFO TO INVESTORS
A cartoon investigating a cartoon: what can one say- truly a match made in heaven. We wonder what would happen if the SEC were to actually inquire about the accounting of billions in off balance sheet liabilities. Actually, nevermind.
Source: SEC
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Did he forget to send his check to Obongwater?
Which FB post?
The one on July 5 where he touted 1 billion viewing hours in the previous month. Stock ran ~20% over two days. I got creamed and was screaming about RegFD to anyone who would listen.No private right of action though so woe is me.
"And yet the SEC has no problems with Hastings' "Dont short me bro" Seeking Alpha when he was selling stock while NFLX was buying back stock"
ROFL.. "don't short me bro".. lol
Insiders selling into corporate buybacks is happening all over The Street. Nothing new about this...just in this case, the Internets postings are a touch over the top.
This phenomena is essentially the looting of shareholder value, buying the stock up with shareholder cash, and the insiders taking it to the bank.
Toss in the HFT effect, and some help from the dark pool guys, and you have the reasons why the equity market is still where it is...despite how even the insiders can see the writing on the wall...in gigantic bold block lettering.
And the "best and the brightest" in this country, our beloved investment banker/broker class, still don't understand why Americans are done with the stock market. Capital formation is dead, and until such time as practices such as insiders selling into a corporate buy back stops...there is no reason to "invest."
Oh no, did he accidentally block access to the porn again?
Desperate to clean up their image? Gosh, you know what that means! A torrent of press releases, full of stern words.
Netflix doesn't have ANY porn, so the SEC already hated them for that.
Im getting sea sick watching NFLX stock lately.....its hard to avert your gaze at an oncoming train wreck though.
He should spin off a subsidiary called Skinflix, that will keep the SEC distracted for a few years.
mmm Pornhub, Tube8, even some extremetube. More than enough free porn to keep the SEC busy.
that's the exact same thing angelo mozilo did and he is laughing his ass off right now
SEC, hard at work...
justice for this guy sould be home confinement and his only electronic connection to outside world is streaming shitty Netflix "new releases"
Yes, he always bought back Stock for the Company right before he sold his own stock. It was so obvious. The Stock always jumped the day before his sale. He never owned the Stock and always sold any Stock awarded him.
He was selling every week for a profit of about a Million Five Hundred Thousand. X52 weeks? He stripped the Company of any Value thru his constant sales.
What did he care if the Company went Bankrupt. He got his.
Blockbuster CEO was pissed he couldn't pull this stock scam off
Many cartoons bring joy and happiness to millions of children worldwide. It is a damn insult to compare the floundering buffoonery of the SEC to the competent comedic stylings of Bugs Bunny, Daffy Duck, etc.
Posting on Facebook to 200,000 people about a download milestone is not public disclosure?
Um...o.k.
Where is Jon Corzine and does the S.E.C. know who he is and that he vaporized $1.2 Billion of investor cash?
The tragicomedy continues.
Full access without restriction, is public disclosure. If ANYONE is required to gain access to it by means of exchange or restriction (i.e. login account or other means of exchange), then it is not 100% inclusive. It is, in fact, exclusive no matter the size.
-1 for you.
Good point.
I still think the S.E.C. are the Keystone Cops and the markets a Ponzi but you are correct about public access.
The same information was posted to their public blog, before the FB post, and widely by reporters after. Some lawyers are going to make some good money arguing these points, he'll pay a fine to make it go away and admit no guilt. In the future even less information will be divulged by public companies because the rules will still be confusing and investors will be hurt because of it.
Meanwhile, the SEC continues to completely miss the real criminals that have stolen billions...
Ugrev: "Full access without restriction, is public disclosure."
That is a joke. We even have laws on this. Perhaps you know of it - FOIA. Yet even when this is filed, it can be rejected for many various reasons. And quite often when data is supplied, the data has so many black markings covering up data, the FOIA becomes useless.
Public disclosure is at the pleasure of who is disclosing it. Transparency is not the goal or the result. The idea of restricted or non restricted access and YOUR ability to access it is part of the game.
I take very serious issue with calling Reed Hastings the most cartoonish CEO. No one has yet approached Patrick "Sith Lord" Byrne in cartoonishness.
Why? Because he called out Wall Street, the hedge funds and their presstitutes? From Overstock.com:
From DeepCapture.com:
I'm sure SEC the meetings with NFLX could become classic first-run cartoons....
Elisse Walter: "Sooo, Mr. Hastings, what do you have to say for yourself?"
Reed: "My counsel, Roger Rabbit, and co-counsel, Ricochet Rabbit will speak for me"
Roger Rabbit: "Ppppppppplease Elisse! Don't pppppppppunish us.!!!"
Ricochet Rabbit (aside to Roger): "Roger, I love it when NFLX stock goes ping, ping, ping!!!!"
Elisse: "Why, I oughtta BOINK all of you. Boink, boink, boink!"
Reed to Elisse: "How about a quick game of PattyCake?"
Elisse:"Meeting adjourned"
Porky Pig:" thabada thabada thabada, that's all folks!"