SEC Looking Into Fake Web Report That Sent Twitter Up 8%

The U.S. Securities and Exchange Commission is looking into possible market manipulation over a fake news article that led to a brief spike in Twitter Inc. shares, said a person familiar with the matter.

Twitter rose more than 8 percent in the late morning after the appearance of the article, which claimed the company had received a takeover offer, before losing most of those gains within 20 minutes.

The report, which imitated the form of a Bloomberg News article, appeared on a site called bloomberg.market.

“The story was fake and appeared on a bogus website that was not affiliated with Bloomberg,” said Ty Trippet, a Bloomberg spokesman.

A spokesman for Twitter said that the story was fake. John Nester, a spokesman for the SEC, declined to comment.

The Bloomberg.market website was registered on July 10 to a post-office box in Panama belonging to WhoisGuard Inc., according to records from WHOis.net. Attempts to reach WhoisGuard, a company that sells anonymization services for website owners, weren’t successful.

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