Remember Société Générale’s huge sell-off last summer after an article published by The Mail on Sunday claimed the French bank was on “the brink of disaster” that was actually false?
In case you need a refresher, what allegedly happened was The Mail re-reported a story from a 12-part fictional series published in Le Monde called the End of the Line for the Euro and passed it off as factual.
The story caused SocGen’s shares to plummet 8.5% the Monday after it was published, according to the Wall Street Journal.
Shortly after the incident, The Mail later issued an apology to the second-largest French bank.
“In an article that appeared in the print edition and online version of the Mail on Sunday on 7 August 2011, it was suggested that according to Mail on Sunday sources, Société Générale, one of Europe’s largest banks, was in a ‘perilous’ state and possibly on the ‘brink of disaster’.
We now accept that this was not true and we unreservedly apologise to Société Générale for any embarrassment caused.”
However, it looks like the apology wasn’t enough.
According to the Wall Street Journal, SocGen is now suing Associated Newspapers, a unit of Daily Mail & General Trust PLC, claiming it suffered “substantial damage to its reputation and prejudice to its trade” following the article.