The U.S. Securities and Exchange Commission has opened an informal inquiry into the online postings of Whole Foods Market Inc.'s Chief Executive John Mackey, The Wall Street Journal reported on Saturday.
For about eight years, Mackey posted numerous comments about the natural- and organic-food retailer on Yahoo stock forums using a pseudonym, according to the report.
In some of his postings, Mackey, the company's co-founder, lauded Whole Foods' stock, cheered its financial results and bashed a company Whole Foods has made a bid to acquire, the report added.
The SEC is likely to examine whether Mackey's comments contradicted what the company previously said, or if they were overly optimistic about the firm's performance.
In addition, the SEC will likely look at whether the CEO selectively disclosed material corporate information -- that could violate a securities law passed in 2000 known as Regulation Fair Disclosure, which was designed to prevent executives from sharing information with favored clients or analysts, according to the report.
Critics of the Regulation Fair Disclosure law say it violates freedom of speech for Mackey's postings were made on a public message board.
Source: Xinhua
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