Old news causes UAL nosedive
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United Airlines (UAL) shares have plummeted after an old news story about the group filing for bankruptcy protection mistakenly resurfaced on the internet.
The BBC has reported that the airline’s shares sank 75% to lows of US$3 within minutes of Bloomberg republishing the report. Only after almost US$1 billion was wiped off the airline’s market value did investors suspect there was a problem.
The article was from 2002, and UAL have since emerged from bankruptcy protection. It has since blamed the South Florida Sun Sentinel’s website for republishing the story from the Chicago Tribune’s online archives. The story was subsequently picked up by a reporter who supplies Bloomberg.
UAL has released a statement demanding the Sun Sentinel retract the report, however investors who sold their stock cannot expect any compensation. NASDAQ has said any trades triggered by the erroneous report would not be rescinded.
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