Fraudulent Bankruptcy Filings Reveal Court System’s Loophole – Bloomberg

Even the brief existence of such fake filings can trigger computer-driven court filing scrapers, leaving incorrect impressions on court watchers including Bloomberg News. Both of Johnson’s filings showed up outside of stock market hours, but NerdWallet’s shares still fell for a time when trading opened on Monday.

“It’s straight-up a bankruptcy crime,” said Shelley Chapman, a retired bankruptcy judge who helped oversee the Lehman Brothers Holdings bankruptcy. “People ought to have access to the dockets. But you draw the line at damaging someone’s business.”

Source: Fraudulent Bankruptcy Filings Reveal Court System’s Loophole – Bloomberg