Some Internet news sites are reporting that software publisher Acclaim will be filing for Chapter 11 Bankruptcy protection on Monday, August 30.

We'll bring more details as we have them, but we'd also like to remind everyone that Chapter 11 is usually the first step toward reorganization and not complete shut-down. For example, K-Mart just successfully stepped out of Chapter 11 this past year.

Wall Street didn't take the "rumors" lightly. Shares of the company–AKLME (NASDAQ)–lost half their value today, to end at 10 cents per share. Also, more than 20 million shares changed hands today, compared to just 3 million shares per day on Wednesday and Thursday.