sec

Twitter needs to deal with the Twitter Accuracy Problem

Twitter's had a bad couple of weeks.

First, the Boston marathon bombings and subsequent manhunt led many (including me) to question the role of fast-moving, potentially inaccurate real-time Twitter reporting and its effect on mainstream news.

Then today, a false tweet from a hacked Associated Press Twitter account claimed that the White House had been bombed and that President Obama had been injured. The news caused a sudden plunge in the stock market (and, one can probably assume, some massive profit-taking by the hackers).

Twitter has always had an accuracy problem. It's a lot of voices, its information … Read more

LulzSec hackers plead guilty to attacks on Sony, Nintendo, more

Three members of hacker group LulzSec have pleaded guilty in a British court to carrying out cyberattacks against various media and entertainment companies and the U.K. National Health Service, according to media reports.

Ryan Ackroyd, 26; Jake Davis, 20; and Mustafa al-Bassam, 18, today all pleaded guilty to a computer hacking-related charge at Southwark crown court in London. They will be sentenced May 14 along with Ryan Cleary, who pleaded guilty to cyberattacks last year.

Ackroyd, who went by the hacker name "Kayla," admitted to trying to hack into several Web sites, including Sony, Nintendo, News Corp.'… Read more

SEC OKs material disclosures on Facebook, Twitter

The Securities and Exchange Commission confirmed today that public companies can announce key information on social media sites such as Facebook and Twitter, so long as investors are informed as to which accounts may publish news.

The acknowledgment was published in the SEC's report of investigation on Netflix, and makes room for social media disclosures to be in compliance with Regulation Fair Disclosure (Regulation FD), a rule that requires companies to distribute material information to investors and the general public non-exclusively. In essence, companies and their executives can reveal news on investor-aware accounts without fear of retribution.

"Companies … Read more

Nasdaq gets OK to pay out $62M for botched Facebook IPO

The Securities and Exchange Commission today approved Nasdaq OMX Group's plans to distribute as much as $62 million in cash to investors involved in Facebook's botched IPO.

The stock exchange operator will give funds to brokerages that lost money due to Nasdaq glitches that delayed the May 18 debut of Facebook shares by half an hour.

After the stock finally started trading, would-be investors complained they were not able to confirm changes or cancellations made to Facebook orders starting as early as 4:30 a.m. PT. Later on in the morning, some traders said they had not … Read more

SEC probe on Facebook pre-IPO sales ends in financier's arrest

To many investors last year, it must have seemed like an amazing opportunity -- giving financier Craig Berkman thousands in cash in exchange for early dibs at Facebook's highly coveted pre-IPO shares.

Berkman, 71, seemed trustworthy. He was a former gubernatorial candidate for Oregon, the state's Republican chairman between 1989 and 1993, and an ex-investment banker.

Little did they know that Berkman was said to have pocketed that money -- totaling $8 million -- and then allegedly used it to pay off debts and fund personal expenses.

Berkman was arrested in Florida today for allegedly defrauding investors in … Read more

HP's Autonomy acquisition probed by U.K. regulators

Hewlett-Packard has a way of quietly announcing its dealings with Autonomy in its annual and quarterly regulatory filings.

In its quarterly report to the U.S. Securities and Exchange Commission today, the company announced that the U.K. Serious Fraud Office has launched an investigation into the alleged irregularities of HP's acquisition of Autonomy.

Here's what HP wrote in its filing:

As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures … Read more

Judge won't dismiss insider-trading suit against Mark Cuban

A Federal judge decided today that a five-year-old lawsuit accusing tech mogul Mark Cuban of insider-trading is going to trial, The Wall Street Journal reported.

The Securities and Exchange Commission filed suit in 2008 against Cuban, owner of the Dallas Mavericks and former Yahoo and Broadcast.com executive, for allegedly relying on confidential information when he sold his stake in search engine Mamma.com and avoided a $750,000 loss.

Cuban has stated in the past that he has done nothing wrong, saying, "The government's claims are false and they will be proven to be so."

Judge … Read more

Sentencing of LulzSec double agent postponed

Hector Xavier Monsegur, better known by his nom de plume "Sabu," was slated to face sentencing in New York City today for his role hacking into public and private Web sites as one of the hacktivists operating under the LulzSec label. All told, he faces a maximum time behind bars of 124 years associated with his guilty plea on ten counts of bank fraud and one count of identity theft.

But Monsegur, who subsequently worked as a double agent for the FBI, still awaits his fate. The authorities abruptly postponed his sentencing. No explanation was offered.

His cooperation … Read more

SEC mulls hitting Netflix with suit over news shared on Facebook

Sharing news on Facebook may have landed Netflix in hot water with U.S. regulators.

The Securities and Exchange Commission yesterday gave Netflix and its chief executive, Reed Hastings, a "Wells Notice" regarding how Reed disclosed some information about the company. What that essentially means is that the SEC may take some sort of civil legal action against Netflix because of something Hastings posted on his Facebook wall about a new video-streaming milestone.

The SEC believes Netflix should have made a more formal announcement instead of simply notifying visitors to Hastings' Facebook profile. A Regulation Fair Disclosure, which … Read more