An excerpt from Bill Virgin's article on Seattle pi. Might just happen to Voodoo
Krispy Kreme fell as quickly as it rose - seattlepi.com
"But Krispy Kreme compounded its problems with earnings revisions, sales declines, an SEC investigation and shareholder-lawsuit allegations of channel-stuffing, book-cooking and lack of timely disclosure to investors.
(A side note: There's been a lot of griping over the years, including in this space, about frivolous, fill-in-the-blank and churn-'em-out shareholder lawsuits filed whenever a stock drops in price, no matter the cause. The sort of meaty issues the Krispy Kreme suits are raising, and which merit further investigation, are exactly why such suits can be valuable as tools for keeping companies in line -- when used properly.)
Krispy Kreme now finds itself in that dreaded position in which its name is never mentioned in news stories without adjectives such as "troubled," "ailing" or "reeling" in close proximity."
However it turns out, the Krispy Kreme story is instructive in how media hype bubbles are created -- and how they get popped.