August 25, 2000 – Ford-Firestone Scandal – Tailhook Redux – An Internet Hoax
August 25, 2000 – Scandals in the news – the controversy surrounding Ford and Firestone and the issue of defective tires became the stuff of Capitol Hill subcommittees this day. Ford had been accused over covering up important issues regarding Firestone tires and Congressional investigators began the process of gather information over the faulty tires. They visited Ford headquarters in Detroit in an effort to determine if Ford and Firestone had acted quickly enough in recalling the faulty tires and if an expansion of the recall needed to happen. Ford officials said they were cooperating. Ford CEO Jack Nassar had been asked to explain the recall to Senator John McCain‘s Commerce Committee. Ford promised to send a representative, but didn’t say if that representative would be Nassar. Investigators were slated to visit Firestone Headquarters in Nashville the following week.
And the Tailhook Scandal which rocked the Navy some nine years earlier was back in the news again. Navy investigators were checking whether some military personnel might have misbehaved at another Nevada convention of the Tailhook Association; the association made up of Navy and Marine aviators. The earlier scandal led to years of investigations into sexual abuse of convention goers by members of the group. This latest scandal had to do with complaints by a civilian couple at a hotel near Reno. Local authorities said that no police report had been filed, but Navy Department officials weren’t commenting on the case, but did say the Inspector General would be looking into it.
And an Internet hoax almost spelled financial ruin for a company. A High-Tech company named Emulex got burned big-time by an internet hoax that said the CEO of that company had resigned and its earnings were being revised and the company was under investigation by the SEC. The hoax led to an immediate 60% drop in value of the company’s stock. The stock eventually recovered, but still closed $6.00 lower than when it started.
And that’s just a small taste of what went on, this August 25, 2000 as presented by The CBS World News Roundup: Late Edition.