'Old' United Airlines bankruptcy story sends shares reeling

September 8, 12:55 PMBusiness ExaminerDarrell Proctor

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The power of the Internet proved itself again today. A 2002 story from the Chicago Tribune with the headline "United Files For Bankruptcy" showed up on the South Florida (Fort Lauderdale) Sun-Sentinel's Web site, sparking a massive sell-off of United Airlines' shares.

UAL shares dropped to 1 cent from $12.45 just before 10 a.m. Eastern when the rumor surfaced. The Nasdaq stock market halted trading for about 90 minutes until United responded to the rumors, and shares jumped back to $11.50 when trading resumed about 11:30 a.m. Eastern.

United spokeswoman Robin Urbanski denied the rumor, with the company issuing a statement saying the reports "were caused by the irresponsible posting of a 6-year-old Chicago Tribune article by the Florida Sun Sentinel newspaper Web site with the date changed. The story was related to United's 2002 bankruptcy filing, and United has demanded a retraction from the Sun Sentinel and is launching an investigation."

United exited bankruptcy in February 2006.