Social Media Policies A Must To Avoid Liability

Social media has proven to be a powerful tool for many business purposes, but also at times a dangerous one. Dan Bailey of the Bailey Cavalieri law firm looks at some of the ways that use of social media by directors, officers and other company employees can result in liability. Public companies need to pay particular attention to postings that include non-public information that may be construed as material to investors. Social media may be used to convey this kind of information, but only when the information is not misleading and, less obviously, only when certain conditions have been established before any such posting occurs.