Remember when it was widely reported Samsung was at least considering an acquisition of BlackBerry? Well, there are now concerns that the rumor was started internally and used to manipulate stock prices in BlackBerry.
Just after the rumor came out, BlackBerry's value greatly increased. That was not surprising because rumors affect stock values all the time, but regulators are particularly concerned about this rumor and where it originated. Both the SEC (in the US) and the Ontario Securities Commission (in Canada) are investigating.
The Wall Street Journal reports, "Investigators are looking at whether someone deliberately fed information to reporters at the news service for the purpose of profiting on the resulting stock increase..."
It took almost no time for the value in BlackBerry to rise by 30 percent only to fall again with news that the rumor was not accurate. However, in a short period of time, trading could have taken place during and prior to the rise. Had people bought in before the rumor --this is something that could be seen by regulators--and then sold off their stock before the drop, that'd be enough evidence to justify an investigation. |