Financial Times FT.com

New business twist to ‘DC Madam’ case

By Alex Barker in Washington

Published: May 1 2007 13:52 | Last updated: May 1 2007 13:52

Dolby Laboratories stock tumbled on Monday within two hours of a woman accused of running prostitutes for Washington’s elite asking a court for permission to trim her portfolio because the music technology group had ”reached its peak”.

The reason for the sharp fall in share price is still unclear, but the internet was abuzz with speculation that Dolby was the latest organisation to suffer from the unfolding Washington sex-scandal.

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