A phony press release at General Mills Inc. which could have caused a stock decline with reports that President Obama had ordered a big investigation of the company after several food product recalls. The investigation was fabricated, say reports.
Although the exact goal still isn’t clear, reports say, the general idea behind the report would be to manipulate the stock of the company. The headline reportedly read: “Obama Orders Full Investigation of General Mills Supply Chain Following Food Recalls.” The release was retracted before financial markets opened and the stock ended up finishing slightly higher at day’s end.
The original story had been released by a wire service that reportedly has very stringent editorial practices that were somehow breeched, reports say.
Corporate hoaxes can change stock pricing dramatically, especially with computer programs designed to sell or buy on news related to the company. Many listed companies have seen their stock price drop on bad news. In addition, the hoax perpetrators can reap millions of dollars on short sales and option trading.
If you or your company have been involved in a possible swindle such as this, the offices of Attorney Jimmy Doan can help. With lengthy experience in personal and financial injury, The Doan Law Firm P.C., can provide answers. Contact the Doan Law Firm, P.C., led by Houston personal injury attorney Jimmy Doan, at 1 Riverway, Suite 2055, Houston, Texas 77056, (713) 869-4747 or (800) 910-FIRM.