AremisSoft drops libel lawsuit against TheStreet.com, investors
Bloomberg News
Wednesday, August 15, 2001
SAN FRANCISCO -- AremisSoft Corp. dropped a lawsuit that claimed that several of its investors and Web business-magazine TheStreet.com libeled the
company and illegally manipulated its share prices.
AremisSoft, a maker of business-management software, claimed in a lawsuit filed last month that The Street.com had conspired with short-sellers to spread false
information about the company to drive down its share price. The suit had sought monetary damages.
Herb Greenberg, a senior columnist with TheStreet.com, had written a series of columns saying that an AremisSoft contract with the National Health Insurance
Fund of Bulgaria was worth $1.7 million in fiscal 2000, less than the $7 million AremisSoft claimed. AremisSoft said last month it is cooperating with a Securities
and Exchange Commission investigation into the company's contract with the Bulgarian group.
"We believe that AremisSoft originally filed this suit in order to try to keep us from reporting the truth," Thomas Clarke, CEO of TheStreet.com, said in a prepared
statement.
A spokeswoman for AremisSoft confirmed the company dropped the suit, declining further comment.
The company, based in Westmont, N.J., also announced Tuesday that it doesn't expect to file its 10-Q quarterly financial report with the SEC on time because some
documents may be missing.
Twin Cities investor Irwin Jacobs, who owns a large stake in AremisSoft, has in the past used his Web site to complain about the company's detractors and
short-sellers.
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