Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

DraftKings to pay $200,000 over disclosure violations: US SEC

Published 09/26/2024, 05:47 PM
Updated 09/26/2024, 07:06 PM
© Reuters. FILE PHOTO: An advertisement for the online sports betting company DraftKings Sportsbook hangs on the side of the Boston Garden in Boston, Massachusetts, U.S., June 17, 2024.  REUTERS/Brian Snyder/File Photo
DKNG
-

(Reuters) - Sports betting company DraftKings (NASDAQ:DKNG) has agreed to pay a $200,000 penalty for selectively disclosing material non-public information on social media accounts rather than to all investors, the U.S. Securities and Exchange Commission announced on Thursday.

In posts on X and LinkedIn in July of last year, the company's public relations firm boasted of DraftKings' "strong growth" even though the company had not released its second-quarter financial results, according to the SEC.

The company then asked for the posts to be deleted but did not disclose relevant information to all investors for a week, the agency said in a statement.

"It is essential that, when companies disseminate material, non-public information, they do so fairly to all investors," John Dugan, associate enforcement director in the SEC's Boston office, said in the statement.

© Reuters. FILE PHOTO: An advertisement for the online sports betting company DraftKings Sportsbook hangs on the side of the Boston Garden in Boston, Massachusetts, U.S., June 17, 2024.  REUTERS/Brian Snyder/File Photo

If they choose to use social media accounts to release key information, companies must inform investors in advance as to which social media accounts will be used, according to the SEC.

Representatives for DraftKings did not immediately respond to a request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.