iReport

CNN iReport's Citizen Journalist Under Investigation by SEC

Does CNN have the right model for user generated news with iReport? CNN believes so but some people who took a loss on their shares in Apple on October 3 might disagree. According to Bloomberg news:

An 18-year-old posted the fake Internet report that Apple Inc. Chief Executive Officer Steve Jobs had suffered a heart attack, and investigators haven't found evidence the teenager tried to profit from driving down the stock, two people with knowledge of the matter said.

So the iReporter didn't profit but what about others?

The bogus report cut Apple's market value by at least $4.8 billion in the first hour of Nasdaq Stock Market trading before a spokesman for the Cupertino, California-based maker of iPods and Macintosh computers said the report wasn't true. The shares recovered a bit, closing down 3 percent.

CNN's response?