UAL Corporation, the parent company of United Airlines, had their stock fall 76% due to a false rumor that the airline was going to file for bankruptcy. United issued a statement saying it was “caused by the irresponsible posting of a 6-year-old Chicago Tribune article by the Florida Sun Sentinel newspaper website with the date changed. The story was related to United’s 2002 bankruptcy filing, and United has demanded a retraction from the Sun Sentinel and is launching an investigation. United exited bankruptcy in February 2006.” Wired’s Kim Zetter reports that a worker at a Miami investment advisory firm googled ‘bankruptcies’ and found the article online and assumed that it was current, and ignored the clearly marked date (2002), then included it in a newsletter to Bloomberg.
The 6 year old report sent UAL’s stock (UAUA) from nearly $12 a share, to $3 a share. After someone finally realized that the story was old, trading on the stock was halted after 11am Eastern Time. Nearly half an hour later, the stock jumped up near its original price, and closed at $10.92 a share.
Well, we all make mistakes, yet, whatever happened to double checking information? Currently the Florida Sun Sentinel newspaper’s website blames the Tribune Company (which I’m guessing oversees newspaper). It’s no doubt that they’re trying to cover-up what they did by redirecting users to a unfamiliar name / company. It’s such an amazing thing that one internet post from a random newspaper can crash a stock these days. What about Bloomberg? Do they proofread information before releasing it? We trust these people with our day-to-day news. There isn’t just one particular person to blame for this, it’s the group of people who didn’t care enough to proofread and double check what they’re posting / sending out. Heads up! It sounds like this could happen to any company, not just United.
Image: flickr.com




