Eli Lilly’s stock fell millions in a single day to $14 billion, all thanks to a fake “verified” account on Elon Musk’s new Twitter payment system.
That account impersonated Eli Lilly and tweeted “insulin is free now,” implying that the pharmaceutical company’s insulin would soon be free.
Other Health care stocks such as Novo Nordisk and Sanofi also came under pressure on Friday, with Novo Nordisk shares falling 3.5 per cent to 111.47 and Sanofi’s losing 3.4 per cent to finish the regular session at 42.80, possibly in solidarity with Eli Lilly.
Although the account was quickly suspended, the damage had already been done, as worried shareholders confused it with reality and sold shares at a rapid pace.
Twitter’s disinformation problem is exacerbated by the democratization of the Blue Check, which has since been halted. Several corporate and government imposters targeted Eli Lilly and Company, including fake accounts for defense manufacturer Lockheed Martin, oil company BP, and produce distributor Chiquita.
The sources for this piece include an article in Investors.com.