Truth in tweeting

Let’s say you decide to pump up your advisory services business and a mutual fund.  So you send tweets puffing up your average returns by claiming performance before fund was created. And you state your fund was ranked number one, which, while true for some of the time, wasn’t completely accurate. And claim that you performed at twice the S&P 500 for ten years. And when a newspaper questions some of your claims, you sue.

The SEC brings civil charges for misleading investors and you get fined.  Your lawsuit gets dismissed.

Does this besmirch not only your reputation but also that of Suze Orman, who’d helped you get started.  Is that a risk she knew she was taking?

“SEC: Adviser Tweets Not So Sweet,” Wall Street Journal, January 31, 2014 C3

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Filed under Business Case, Content, Information, Legal, Requirements, Risk

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