These internet rumors go viral before anybody does the legwork of checking if they're actually accurate. Wayne Knight (Newman from Seinfeld) had to send out tweets last week protesting that he was still alive after he was erroneously reported dead. As TheDude says, that's pretty f*cked up for friends and family members of the alleged "deceased".
Sometimes this stuff is an honest mistake, and other times it's malicious in nature. With the information age came a golden age for misinformation. Always best to maintain an open mind until something is proven true, or in this case... untrue.