Diedrich Coffee Inc. shares jumped 20% Tuesday because of what the company said was an unfounded Internet rumor.
The jump apparently was triggered by a comment on an Internet message board that said the Irvine-based coffee retailer might soon sign a second franchising contract agreement. "The Internet is wonderful, but it also does crazy things sometimes," said Diedrich spokeswoman Ann Wride.
The heavy volume prompted a call from Nasdaq officials and Wride said she informed them that the company had no news to report.
Diedrich shares closed Tuesday at $5.25, up 88 cents, with 122,800 shares trading hands, more than five times the three-month daily average.