US airline UAL shares plummet after claims of bankruptcy

September 9th, 2008 - 6:31 pm ICT by David M N James  

United Airlines planeUnited Airlines is facing a crisis.

Its parent company UAL Corp got a shocker as its shares dropped value in trading. UAL shares got battered on yesterdays trading due to investor dissonance on the embattled United Airlines misfortunes. Its typical when a company has a bad image or suffers too much negative publicity, its listed shares and affiliates stocks resonate symmetrically to the this forcing the prices to go down.

The most intricate issue around the case of United Airlines’s a Google news tracker which pointed to an article that told of United Airlines bankruptcy. This article was 6 years old.

The article became a hit on Google news prompting a media circus on the issue. Subsequently, Google sought clarification of the articles legitimacy prompting a reply which explained that the article was an error and that it had been removed.

The buck stops with this article posted on Saturday, September 6th at 10:36PM Pacific time. The Google crawler discovered the news item link on the popular Florida Sun-Sentinel website in a section of the most viewed stories labeled “Popular Stories: Business.” The link appeared in that section sometime after Googlebot’s last crawl at 10:17PM; because the crawler saw this new link appear, it followed it to an article titled “UAL Files for Bankruptcy

UAL Corp. (NASDAQ: UAUA) lost more than three-quarters of its value after the South Florida Sun-Sentinel published a 6-year-old report from the Chicago Tribune saying that UAL had gone into bankruptcy. This bankruptcy story was published by Investment Securities Advisor, a Florida firm, through Bloomberg news service. The facts is, United Airlines filed for bankruptcy in 2002, though it has claimed that it has more than enough liquidity and that current bankruptcy issues are “completely untrue”. Web sank shares was stopped from running the item. UAL is still lamenting this could have been prompted by a mere mistake in reporting.

Tags: , , , , , , , , ,

Posted in Business, Sci-Tech, Technology Industry News |