Earlier this month, an investor news service, the South Florida-based Income Securities Advisors, found a news article from 2002 about United Airlines' bankruptcy via Google News and consequently included it in that day's news digest--which wound up on Bloomberg's news wire.
By the time United put out a release denying the news, its stock had plummeted 75 percent from $12.30 on Friday to less than $3. It eventually climbed back up to $10.49, but Nasdaq, which lists United Airline's stock, decided against rescinding trades that had happened as a result of the mishap.
The SEC has opened a "preliminary inquiry" into the matter, people familiar with the matter said.
Photo by Official Google Blog
Caption by Michelle Meyers
