This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Silvercorp Metals Inc. has filed a defamation suit in the Supreme Court of British Columbia against Bronte Capital Management Pty. Ltd., an Australian-based hedge fund manager that accused the company of being a fraud in a blog posting. According to the suit, a Bronte officer made the posting as part of a "short-and-distort" conspiracy, in which it and others shorted the company and hoped to push it down with false and defamatory statements. Silvercorp is seeking damages and an accounting of profits, as well as an injunction to prevent Bronte from dissipating assets.

The suit comes several months after Silvercorp sued short-sellers Alfredlittle.com and Chinastockwatch.com in New York, complaining that they pushed the stock down with false information and then made as much as $100-million (U.S.) in shorting gains. The short-sellers had accused the company of reporting a profit in Canada while in China it was recording a loss. The fraud on investors amounted to $1.3-billion, they claimed. Silvercorp complained that the statements were not true. Nobody has responded to that suit.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS