Leaked Wired Memo Raises Questions

In space, no one can hear you scream--but you can hear chief executives scream on the Internet.

An internal e-mail message from Wired Ventures Chief Executive Louis Rossetto's--which was quickly posted for the masses on public Internet sites--appeared to offer strong support for the company's forthcoming $293 million stock offering and complained viciously about poor journalism as the main threat to the firm's bid to raise capital. The offering is supposed to be priced this evening. (WWWW:NASD)

This rather spirited support of a firm's offering in a widespread internal memo that rapidly migrates to the Internet raises several sticky questions about the Securities and Exchange Commission's so-called quiet period rule. Securities lawyers said the issue of Internet dissemination, especially dissemination not authorized by the company, raises thorny questions about stock hyping and how to control comments made electronically to a firm's employees. ...