France Fines Bloomberg For €5Mln
The French Financial Markets Authority (AMF) fined Bloomberg € 5 million for publishing inaccurate information about the French construction company Vinci, the management website reported.
A minute after the publication of Bloomberg, the price of Vinci shares fell 18.28%, and the market value of the company lost € 6 billion.
According to AMF, on November 22 two journalists from the Paris office of Bloomberg LP news agency published various newsletters on Bloomberg terminals that duplicate the content of fraudulent news.
The report mentioned, in particular, discovery of very serious accounting irregularities requiring an audit of Vinci’s consolidated financial statements for the 2015 financial year and the first half of 2016, which resulted in recognition of a net loss instead of profit for the period under review, as well as to the dismissal of its financial directors.
Vinci shares are included in the CAC 40 stock index calculation base. Bloomberg has issued a rebuttal, the company’s stock price has recovered, but investors have been harmed.
AFP also received such a press release, but found out that the press release was fake. According to AMF, Bloomberg had to check the information before publication.