Reverse

China Reverse Merger Litigation Update

Here’s an update about what’s going on with litigation related to China Reverse Mergers. China MediaExpress Holdings Inc., which went public in the U.S. through a reverse merger, was a fraudulent enterprise, a Hong Kong arbitration panel ruled, awarding Starr International Co. as much as $77 million in damages. CME’s shares have been delisted.

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glasses

Using Social Media to Release Information about your Company

Can a posting on Facebook ever satisfy the requirements of Regulation FD? We conclude that in almost every case it cannot. We recommend that in every case in which previously non-disclosed information is posted on a social media site, whether it be Facebook, LinkedIn or Twitter, that the posting be made part of a press release simultaneously issued by the company and simultaneously filed as Regulation FD information on Form 8-K.

We also caution all of our clients to be careful about how they present the information. Our advice is always: Consider what the SEC would say if you put the information in your press release [or social media posting] in an S-1 registration statement reviewed by the staff. If the staff wouldn’t like what you say or how you say it in an S-1, you shouldn’t be saying it in a press release either. We urge all of our clients to have all press releases and postings reviewed by us for input on this matter.

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