Regulators Looking At Possible Stock Manipulation From Samsung And BlackBerry

Samsung and Blackberry

Last month, rumors claimed that Samsung was going to buy Blackberry. While those rumors were swiftly denied by both companies, BlackBerry’s stock price skyrocketed while the rumor was still thought to be true.

Because the rise and fall of the stock price was so fast, regulators from the US and Canada are investigating trading activity from the time of the rumor to see if any manipulation was involved by someone who wanted to profit off BlackBerry’s stock.

From The Wall Street Journal:

“The Securities and Exchange Commission and the Ontario Securities Commission are in the early stages of examining trading activity around the time of a report by Reuters in January that Samsung was pursuing a takeover of BlackBerry for as much as $7.5 billion, according to people familiar with the matter. 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, one of the people said.”

As the Wall Street Journal wrote, BlackBerry’s stock rose by 30% and then nosedived in a very short amount of time after the rumor was stated to be false. While the regulators may have a hard time proving fraud, this will be very interesting if the investigation yields results.

Source: Wall Street Journal via Android Central

One Reply to “Regulators Looking At Possible Stock Manipulation From Samsung And BlackBerry”

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