Vancouver-based Silvercorp Metals Inc. (TSX:SVM; NYSE:SVM) expanded its lawsuit against alleged shorter sellers that the company claims spread “false, defamatory and fraudulent” information about the company to push share prices down.
The company’s New York Supreme Court lawsuit added EOS Holdings LLC., Jon Carnes, Zane Heilig, Andrew Wong and International Financial Research and Analysis to the list of defendants.
Original defendants included Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore and several John Doe defendants.
The new defendants are members of the group collectively known as the defendant Alfred Little.
Silvercorp alleges the defendants spread the “false” information about the China-focused silver miner on the Internet and in letters to both media and regulators with the intent to drive down the price of Silvercorp’s stock to profit on short positions.
Silvercorp is seeking compensatory and punitive damages, and wants the court to strip the defendants of profits made from short-selling Silvercorp stock and give that money either to Silvercorp or put it in a constructive trust and paid as the court directs.
Glen Korstrom
@GlenKorstrom