Regulators are checking into possible stock manipulation regarding the rumors Samsung was buying BlackBerry

Last month the rumors of Samsung being in talks with BlackBerry to buy them out sent BlackBerry’s stock through the roof. BlackBerry’s stock surged 30% after the rumors of the buyout started circulating the internet. Now regulators from both the U.S. and Canada are investigating the stock trades during the time of the rumor to see if the rumor was started to profit because of the surge.

According to 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.

After both Samsung and BlackBerry denied the rumors BlackBerry’s stock dropped. What do you think? Let us know in the comments.

Source: The Wall Street Journal

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