Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
JPMorgan Offers Lesson in How Not to Use Social Media
Author: Scarinci Hollenbeck, LLC
Date: November 27, 2013
Key Contacts
Back
JPMorgan Chase is not having a good month. The bank’s mortgage arm recently agreed to a record $13-billion settlement with the federal government over selling risky mortgage investments.
While financial institutions can undoubtedly learn many business lessons from JPMorgan’s legal settlement, the company’s recent social media snafu has broader applicability to New York and New Jersey businesses. As reported by Investment News, its attempt to capitalize on the hype surrounding Twitter Inc.’s successful IPO backfired in grand fashion.
The plan was to conduct a question and answer session with vice chairman James B. Lee Jr. using the hashtag #AskJPM. However, the Q&A was subsequently cancelled after JPMorgan realized that Twitter users were using the hashtag to post disparaging comments about the company.
Examples included:
@RacehorseDCL: “What does it feel like when crime does pay?”
@ddayen:“What’s more satisfying: securities fraud on pension fund investors, or foreclosing on all those Alt-A loans?”
The lesson for businesses looking to capitalize the popularity of social media is that not all “buzz” is good “buzz.” Just like traditional marketing campaigns, companies must carefully consider the legal, business, and public relations implications of their efforts before taking any action.
While JPMorgan merely suffered embarrassment, other companies have faced legal headaches. Last year, Netflix received a Wells notice of potential enforcement from the Securities and Exchange Commission (SEC) after its CEO posted on his Facebook page that the company had reached 1 billion hours of viewing. Although the SEC ultimately decided not to pursue the matter, the incident highlights the many risks that social media can bring, if not executed carefully.
If you have any questions about the legal risks of using social media, please contact me, Sean Dias, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.