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Ok, so TechCrunch violated whatever agreement they had with Snap. What is the consequence?
by tempsy 7y ago
Ok, so TechCrunch violated whatever agreement they had with Snap. What is the consequence?
- gamblor956 7y agoNothing, for TC. For Snap? A fine and a binding agreement not to do this again or else to designate TC as one of their preferred methods of disclosing financial information (like Elon's twitter is for Tesla). Shareholders on the wrong sides of trades today can also sue Snap and have a good chance of recovering any putative losses. This is actually the bigger concern for Snap since this is likely a much bigger amount than any potential SEC fine.
- paxys 7y agoI wouldn't say nothing for TC. Breaching embargoes is a very big deal in journalism and incidents like this greatly affect a publication's reputation. They are definitely not getting any such briefings for a while now.
- gamblor956 7y agoAgreed, but I was only looking at it from a legal perspective.
- tenpies 7y agoI would say that is pre-2016. After 2016, journalism as a profession became extremely fast and loose. A "we'll apologize if we're wrong" approach took over, plus zero accountability or consequences for false information. On the bright side, the SEC will eventually ask how this happened. Not that they do any serious enforcement these days.
- tempsy 7y agoWell they had time to prosecute a first year investment banking analyst who made $100k trading on insider information a few months ago and just this week did the same to another Goldman Sachs banker. I’m positive both resulted in gains much smaller than the losses some people sustained by this mishap.
- sp332 7y agoTechCrunch might not be trusted with embargoed data. That's bad for their business, depending who decides to keep them in the dark from now on.