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So You Want to Sue Citron Research.
As most of you know, my name is Andrew Left and I have been publishing under the Stocklemon.com and now CitronResearch.com banners for over 6 years. A common question I am asked is, “How often do you get sued?” To date, I have been sued 5 times and have never lost a case. The reason is that I am always prepared to defend anything I write in a court of law.
Most recently, Home Solutions CEO Frank Fradella told a Dallas newspaper, “We have spent some significant dollars understanding what our legal rights are against him.” Well we thought we would share with our readers and with Mr. Fradella the fate of two CEOs whose companies filed suit against Stocklemon … one of these fates being realized just last week.
Two years ago, Stocklemon published a series of critical reports on GTX Global.
http://www.citronresearch.com/index.php?s=gtx+global
GTX sued Stocklemon, announcing their action with a flashy press release titled: “GTX Global files $50 million lawsuit against Stocklemon.”
http://sev.prnewswire.com/computer-electronics/20051122/CLTU02422112005-1.html
In another press release GTX Global stated, “The company believes that Stocklemon continues to try to coordinate old news and totally unrelated news on GTX Global to suit its position on the company stock, despite the company’s efforts to advance the technology and provide positive shareholder awareness by updating news releases as necessary.”
Well, the lawsuit was won by Stocklemon. Not only did we win, but in the court of appeals we set new standard and precedent for the legal protection of web blogs under anti-SLAPP laws.
http://www.internetlibrary.com/cases/lib_case486.cfm
Just last week, the CEO of GTX Global was picked up by FBI Agents at an airport in New York as he was charged with conspiracy and money laundering.
http://www.thepilot.com/stories/20071005/news/local/20071005GATELINX.html
This outcome is similar to the lawsuit filed against Stocklemon by YP.net. After Stocklemon reported on misdoing by management, YP.net responded by suing Stocklemon and putting out a press release that stated:
“The lawsuit states that the Internet publication has sought to intentionally damage YP.Net’s value and relationships in order to artificially drive down the price of YP.Net stock “for the personal gain of those involved in the defamation and libel.”
http://www.snl.com/Cache/c1500013189.html
Five months later, YP.net CEO Angelo Tullo was indicted by a Federal Grand Jury on 29 counts of conspiracy and money laundering
http://www.azcentral.com/specials/special19/articles/0529Tullo.html
Needless to say, the lawsuit was dropped.
Citron Research has brought critical thinking to the market for the past 6 years and will continue. Sometimes our research uncovers information that might not be flattering to the company in question, but it is always based on publicly verifiable facts. While we cannot ever guarantee where stock prices are going, we can always guarantee that the information on the site is accurate, even if it is at times brutally honest. So before you think about suing Citron Research, make sure you are willing to defend everything you have done, not just your words, but your actions, in court — we are.