Case Study:

Apex Capital

A financial hoax

On July 31, 2024, Apex Capital Trust, a multinational holding company, announced an all-cash offer to acquire Paramount Global for a staggering $43 billion. The announcement quickly made headlines across major financial media outlets such as Bloomberg and Reuters.

Not long after, concerns emerged regarding the legitimacy of the offer. Wired by Apex Capital’s public relations agency, the press release was subsequently withdrawn from the newswire service, raising red flags about the authenticity of the bid.

Soon, it became apparent this news was a hoax. Major outlets, including Bloomberg and Reuters, withdrew their stories, sparking widespread concern about how easily misinformation can spread to the public.

This incident underscored both the dangers of misinformation and the critical role PR agencies play as the first line of defense in verifying information before distribution.

Greg Mondshein
President, SourceCode Communications

In the wake of this event, we spoke with Greg Mondshein, Co-Founder and President of SourceCode Communications, to gain insight into how agencies can do better moving forward.

"Unfortunately, dishonest players will always be out there," Mondshein acknowledged regarding the incident. "It's our job to ensure we’re doing the proper vetting to identify them. At SourceCode, we have a strict, multi-step process to engage with reputable partners."

Mondshein emphasized that an effective vetting process requires going beyond surface-level checks. At SourceCode, for instance, a multi-step, layered process ensures the credibility of potential partners—an approach other agencies can adopt.

Researching the Executive Team

It starts by investigating the background of the company’s leadership. This means looking at their previous roles, achievements and any media attention they've received. Check the leaders’ public profiles on LinkedIn, their participation in industry events and their track record in building businesses.

Examining the Brand’s Press Coverage

Analyze how the brand has been covered by the media. Review news articles, interviews and any press releases to get a sense of how the company operates, its key messages and whether it's faced any controversies. Past media coverage helps assess the legitimacy of the brand and gauge its public perception.

Reviewing Customer Feedback

To get an external perspective, look at platforms such as G2, Capterra, Consumer Reports and Google Reviews. They provide insight into how the brand’s products or services are being received by the public. If the reviews are overwhelmingly negative or questionable, it’s a red flag that the company might not be as reputable as it claims.

Consulting Industry Networks

Tap into professional networks to gather insights about the potential client. This might include reaching out to other PR pros or industry peers to understand more about their background, reputation and business practices.

“Despite these steps, there’s always a chance a company can slip through the cracks,” he said. “You need to have a crisis plan in place to immediately act on new information as it becomes available.”

When it comes to verifying client-provided content, Mondshein added: “I don’t know any agency that wouldn’t review a piece of content that a client provides before pushing it out across any channel. Our reputation is also on the line. As the final party reviewing information before it hits a wire and journalist inboxes, we’re responsible for taking all possible steps to ensure we’ve validated the information we’re pitching.”

“As the final party reviewing information before it hits a wire and journalist inboxes, we’re responsible for taking all possible steps to ensure we’ve validated the information we’re pitching.”