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.