Yes. They do.

Email Forwards Prove How Gullible People Are by Bill Barnwell:

"Distorting the facts (or making up lies) is what 90% of email forwards do. For those who enjoy receiving and passing along email forwards, it’s probably not totally unfair to say that this hobby is making them less intelligent. People who thrive on email forwards are typically not very big on critical thinking. Discernment is not their gift. Any sensational sounding forward they receive they will believe – as long as the hero in the message is someone they approve of and the villain someone they disdain. If those roles are reversed they are more prone to discount the "facts" of the said forward."