Silvercorp Lawsuit Against Chinastockwatch.com Dismissed
Stock Chart for Silvercorp Metals Inc (SVM)
A Silvercorp Metals Inc. (SVM) lawsuit against the website Chinastockwatch.com over alleged false information posted about the company was dismissed by a New York state court judge.
Silvercorp sued Chinastockwatch.com and Alfredlittle.com and their operators in September, accusing the sites of publishing false information to lower the company’s share price and profit on short sales. In a short sale, an investor sells borrowed shares, hoping to return them to the lender after buying the stock back at a lower price.
Anthion Management LLC in March filed a countersuit identifying itself as the author of an anonymous report on Silvercorp that was sent to securities regulators, auditors and journalists and later published on Chinastockwatch.com.
Justice Carol R. Edmead dismissed the countersuit last month and yesterday granted the defendants’ motion to dismiss the lawsuit, agreeing with Anthion’s argument that the defamation claim should be thrown out because the statements are “non-actionable, constitutionally protected opinion.”
“The content of the communications at issue, their tone and stated purpose show that Anthion was expressing its view that Silvercorp potentially committed accounting fraud,” Edmead wrote in her decision.
A voice-mail message left with Vancouver-based Silvercorp spokesman Jonathan Hackshaw seeking comment on the ruling wasn’t immediately returned.
To contact the reporter on this story: Chris Dolmetsch in New York at email@example.com
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.