Vancouver-based Silvercorp Metals Inc. won’t keep fighting in courts for defamation damages connected with an alleged “short and distort” scheme, the company has announced.
Silvercorp announced this morning that it has withdrawn the appeal it filed after a U.S. court dismissed a defamation suit that Silvercorp had launched against a group of U.S. short-sellers.
Silvercorp’s original suit sought compensation for what the company alleged were “short and distort” publications. However, New York State Supreme Court tossed the case, deeming the publications to be statements of opinion rather than of purported fact.
In Silvercorp’s announcement yesterday, the company said that while it disagrees with the court decision, the company “believes it is in the best interest of the company and its shareholders to end this potentially lengthy and expensive litigation.”
The company further stated that, regarding class action filed against the company in December 2012, the company believes “there is no merit to the allegations set out in the class action lawsuits since they are based on previously made false accusations and as such represent nothing new.”
The company noted, however, that it has retained New York-based Latham & Watkins LLP as its legal counsel.
