After United Airlines (UAUA) stock crashed on false bankruptcy rumours, we expected the SEC to get involved. And now they have:
WSJ: The Securities and Exchange Commission opened a preliminary inquiry into the circumstances around UAL Corp.’s stock drop, according to people familiar with the matter.
The inquiry is in early stages and may not result in a full investigation, one person familiar with the matter said.
The SEC is looking at whether there was any improper behaviour behind the release Monday of a 2002 Tribune Co. news story about UAL’s bankruptcy filing, which was picked up by Google Inc.’s automated news service. After the old story resurfaced, UAL’s stock fell from $12.50 to $3 in 15 minutes before trading was halted.
See Also: When Algorithms Attack: How Googlebot And Tribune (And Some Idiot) Killed United Airlines Stock
Tribune Web Traffic So Awful That One Visitor Killed United Stock (UAUA)
Tribune Blames United Airlines Bankruptcy Screw-Up On Anyone But Themselves
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