SEC charges DraftKings with selective disclosure via CEO's social media, violating Reg FD, settles with $200k penalty.

The SEC has charged DraftKings Inc. for selectively disclosing nonpublic information to certain investors via CEO's social media, violating Regulation Fair Disclosure. This occurred in July 2023 when a post about the company’s growth was made but removed quickly, with public disclosure delayed by a week. DraftKings has settled by agreeing to pay a $200,000 penalty and will implement training to prevent future violations.

September 26, 2024
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