Financial blogger must appear in court
A New York judge has ordered an anonymous blogger to appear in court next week over accusations that the blog Alfredlittle.com wrote false reports about a Chinese company to drive down the stock.
“The lawsuit, which also names the investor website Seeking Alpha (http://seekingalpha.com), claims that Alfredlittle.com falsely accused Deer of engaging in fraudulent land transactions in China, driving down its stock price. The lawsuit sought to recover as much as $100 million in trading profits.
“Bloggers have gained attention for accusing U.S.-listed Chinese companies of fraud while at the same time shorting their stock. The companies have hit back with lawsuits, saying the bloggers are distorting facts to make money. The U.S. Securities and Exchange Commission has taken action against several China-based companies that are listed on U.S. exchanges for violations of U.S. securities law.
“The lawsuit brought by Deer Consumer Products is one of a trio of cases brought against ‘Alfred Little’ in New York. Similar cases were filed by Silvercorp Metals Inc, a Chinese silver producer, and Sino Clean Energy, a producer of a coal-based slurry used as fuel.”
Read more here. The Aflred Little site says it “publishes cutting-edge long and short investment ideas and research focusing on companies operating and doing business in China. A*L is primarily supported by the efforts of analysts and investors based in China. A*L welcomes anyone to contribute articles and reports for publication provided they meet the site’s standards.”