05:21 PM EDT, 09/26/2024 (MT Newswires) -- (Updates with the company's response in the last paragraph.)

DraftKings ( DKNG ) has agreed to pay a $200,000 civil penalty to settle claims by the US Securities and Exchange Commission that the company disclosed certain "material" nonpublic information to select investors, the SEC said Thursday.

The company disclosed the information in July 2023 to investors who followed or otherwise saw its chief executive's social media accounts without disclosing the same information to all investors, according to the SEC.

"Even though Regulation FD required DraftKings ( DKNG ) to promptly disclose the information to all investors after it was selectively disclosed to some, DraftKings ( DKNG ) did not disclose the information to the public until seven days later when it announced its financial earnings for [Q2 2023]," the SEC said.

The company has agreed to pay the penalty without admitting or denying the order's findings, the SEC said.

"DraftKings ( DKNG ) is pleased to have this matter resolved," a company spokesperson told MT Newswires in an e-mailed statement.

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