Six year old article on the bankruptcy

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Reference no: EM131027110

On a Sunday morning in September 2008, a reader browsing through archived stories in a Florida newspaper came across a six year old article on the bankruptcy of United Airlines (UAL). UAL had declared bankruptcy in 2002 but emerged from it in 2006. The single viewer accessed the article at a low traffic time and Google crawler classified and published it as a “popular” news item in Google News. Later that day, an investment firm employee came across the Google-fed story and assumed that UAL had filed for bankruptcy again. He went on to post a summary in Bloomberg and investors scanning Bloomberg started selling UAL stocks. This coupled with automatic selling by computerized trading systems lead to the fall of UAL stock prices from $12 to $3 representing a one billion drop in investor wealth.

Reference no: EM131027110

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