Legal Question in Securities Law in California

Can I post

Hi,

I visited a small startup company recently that I already own shares in that trades on Pink Sheets, and I talked with the CEO. Can I post what the CEO said to me in a online public stock discussion forum? What am legally able to share or not share?

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He did tell me upcoming positive company information that is not disclosed anywhere publicly. He didn't tell me to keep the discussion secret, but he didn't expressly give me permission to tell others either. My shares quantity is not significant.


Asked on 3/01/06, 9:14 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Can I post

I would suggest that you not post anything. I don't see any obvious securities law or other violation; you're not an insider. On the other hand, if the information is favorable and turns out to be untrue, someone might sue you for somehow being complicit in a fraud, and if the information is unfavorable hte CEO or company might accuse you of revealing confidences or defamation or something.

I am aware that there is a lot of gossip and information-sharing about publicly-traded companies on the Internet, most of the gossipers get away with it, and we have freedom of speech and all that. I'm just pointing out that there is a little risk involved.

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Answered on 3/01/06, 10:05 pm


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