No, it is not true. Where did you get that information? My broker still allows me to do that however, there are limits. Most of the times, my profits got cancelled.

My broker allows me to trade during news time but there are limitations set by my broker.

It is still allowed to do such thing but it is risky. Some traders got lost their money because their broker cancelled the profits from news trading.

Yet, it is not allowed for some brokers because it could cause bankcruptcy.