Samsung Not Buying Fingerprint Cards: News Is Fake

Call it one Freaky Friday in Sweden. A press release went out announcing that Gothenburg-based Fingerprint Cards, a biometric technology company, and Samsung Electronics had entered into a definitive agreement for Samsung to acquire Fingerprint Cards for $650 million in cash. No way. Johan Carlström, CEO of Fingerprint Cards, subsequently said it was not true and that the release was fake. Samsung said the release was fake too.

Then where did the release come from? The press release distributors say they were hit by a sophisticated fraud. So whodunit? Nobody knows, and that is why the biometric sensor company is calling for a police probe. Likewise, Cision, the press release distributors, said they were turning the case over to the police "for investigation of criminal offense."

Fingerprint Cards is actually reporting the Friday incident both to the police and to the Swedish Financial Supervisory Authority. In its Friday statement after the phony release made its way around the Internet, the company issued a formal statement on its site: "The news in today's media that Fingerprint Cards AB has been acquired by Samsung is incorrect. The previous press release was not sent by Fingerprint Cards AB. Trading in the share has been suspended. What has happened will be reported to the police and to the Swedish Financial Supervisory Authority."

Distributor Sends Apologies

Stock activity tells a story about why calling in financial watchdogs would be in order. The fake news that Samsung would buy the biometrics firm sent Fingerprint Cards shares up 51 percent before the word was sent out from Sweden and Seoul that the story was untrue. The volatility was subsequently reined in and suspended by the Stockholm exchange.

Cision said in its "preliminary investigation" of the event, the company had followed procedures but had been subject to a fraud. Cision said...

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