Malicious Email Causes Company’s Stock to Plummet
Written by Sue Walsh on December 18, 2008
In an interesting case showing just how powerful email can be, an Israeli snack company had its stock plummet after an HP employee sent a malicious email to thousands claiming their “Bamba” brand snack was linked to several infant deaths. The claim was false but the damage was already done:
In less than three days, the email was sent to tens of thousands of people, and was featured in numerous internet forums. The content of the email was also disseminated by SMS and word of mouth. In parallel, company workers entered various parenting and childcare forums online, clearly identifying themselves as belonging to Osem’s customer-service department, and reassuring surfers that Bamba was safe.
At least some damage had already been done. The e-mail sent Osem stock spiraling south, falling as much as 6% before rallying to close only 1% lower, on enormous turnover - for Osem – of NIS 27 million.
The company says they will file a complaint against the woman with the police. A lawsuit is also not unlikely, considering the damage that was done. Let this be a lesson in just how powerful-and how damaging an email can be. Think before you hit send!


