Originally published: Berlo, J., Worrell, J., & ORourke, J. S. (2002). Emulex, Incorporated: A crash course in crisis management (B). 02-01(B). Notre Dame, IN: The Eugene D. Fanning Center for Business Communication, Mendoza College of Business, University of Notre Dame.

The worlds largest producers of fiber channel host adapters is the victim of a stock price manipulation hoax. In the course of just a few hours, share price falls from {dollar}113 to less than {dollar}50, as more than {dollar}2 billion in market valuation evaporates. A fictitious press release to Internet Wire, quickly re-transmitted by Bloomberg News, CNBC, and others, claims that key executives have resigned and that fourth-quarter earnings will be drastically revised and restated. CEO Paul Folino must act quickly to prevent the total collapse of his stock on the NASDAQ.

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