The SEC's action reflects concerns about selective disclosure by companies and the imperative for equitable communication with all investors, as stated by John Dugan.
DraftKings' communication practices failed to adhere to Regulation Fair Disclosure, leading to a penalty for improperly sharing sensitive growth information on personal social media accounts.
The posts shared by DraftKings' PR team on the CEO's accounts contained significant growth data, which should have been communicated publicly in a timely manner.
This incident underscores the importance of adhering to company policies, including quiet periods for sharing financial information, as violations can result in regulatory penalties.
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