US: Apple shares fall 9% on phoney report, SEC investigating

Posted by Katherine Thompson on October 6, 2008 at 9:24 AM

The Securities and Exchange Commission (SEC) is examining the latest "false-report" story that has emerged from new media. iReport, a citizen journalism platform on CNN, reported last week that Apple CEO, Steve Jobs, suffered a heart attack on Friday. Job is viewed as central to Apple's success and the story resulted in Apple's shares nose-diving 9%.

CNN's Jennifer Martin reported that SEC investigators have contacted the respected broadcaster for details on who is behind the false-story. CNN are reportedly launching their own investigation into the affair. iReport is a platform The CNN-owned site is dedicated to hosting news submitted by members of the public. Martin said that it clearly says on the site that most stories are not edited, filtered, or vetted.

CNET report that rumours are circulating that the story may have been posted to manipulate the stock market.

In order to submit a story on iReport, a person need only submit an e-mail address.

The story has raised questions about citizen journalism and new media in general, the reaction the story caused in the financial markets highlights the impact that these stories has. Is it time the platform ccame under tighter regulation?

Source: CNET and Reuters

See also:

US: United Airlines stock plummets after old bankruptcy story re-surfaces