Stockgroup sues competitor for defamation
2005-08-23 15:18 ET - Street Wire
Also Street Wire (U-QMCI) Quotemedia Inc
Also Street Wire (U-SWEB) Stockgroup Information Systems Inc
by Stockwatch Business Reporter
Stockgroup Information Systems Inc., operator of the Stockhouse investor relations website, has a problem with a former employee. Stockgroup is suing a former hire, Rizwan Rafiq, and his new employer, Quotemedia Inc., for defamation, alleging Mr. Rafiq told at least one customer there were security problems with Stockgroup's on-line services.
Stockgroup's claim
Stockgroup, in a six-page lawsuit filed in B.C. Supreme Court on Friday, says Mr. Rafiq left Stockgroup on Feb. 18, 2005, and took up employment at competitor Quotemedia, which has offices in Parksville, B.C., and Fountain Hills, Ariz.
Over four months after he left Stockgroup claims Mr. Rafiq sent an e-mail on June 25, 2005, to one of its customers saying "grossly defamatory" things. The e-mail, sent to Richard Kimber of stock market research company Global Securities Information Inc., is quoted in Stockgroup's lawsuit:
"Dear Richard,
"Did you know you have a security leak?!? I don't have to log-in to enter your GSI Online pay section of $495 for Quotes, Charts, Company Profile, etc: gsi.stockgroup.com
"I can provide you with many more links to access your site. The problem is with the redirect that takes place when your users want to see financial products. Your users actually leave your site and go to the Stockgroup site. You notice above the URL change is Stockgroup.com and not gsionline.com -- imagine all the money you be losing!"
The letter, which continues for several more paragraphs, directed Mr. Kimber to Quotemedia's website.
"Let me know how you would like to move forward," Mr. Rafiq wrote in conclusion.
The meaning of words
Stockgroup, continuing its claim, says Mr. Rafiq's e-mail means some pretty nasty things.
"In their natural and ordinary meaning, the said words meant and were understood to mean that: (a) Stockgroup's system is not secure and is inferior; and (b) As a result, Stockgroup's clients will not only expose their systems to security leaks but also suffer lost revenues as, inter alia, given the deficiencies in Stockgroup's product and services, their customers are able to acquire data and information from them without payment," Stockgroup claims.
Making matters worse, according to Stockgroup, is that Mr. Rafiq and Quotemedia are still sending e-mails such as the one above, and are keeping mum about the details.
"Quotemedia has refused to divulge the identity of other parties who were sent similar false statements thereby preventing Stockgroup from contacting them in an effort to mitigate its damages," the suit claims.
Damages
Stockgroup, represented by David Lunny of Vancouver firm Devlin Jensen, is asking for general, punitive and aggravated damages. Stockgroup also is asking for a court order preventing further defamatory e-mails.
"As a result of the Defendants' conduct which is wrongful, malicious and offends all tenets of commercial morality, the Plaintiffs claim punitive and aggravated damages and an order for special costs," the lawsuit concludes.
Quotemedia has not filed a reply to the lawsuit and the allegations have not been proven in court.
Stockgroup closed unchanged Monday at 38 cents on the TSX Venture Exchange. Quotemedia, meanwhile, closed at 44.5 U.S. cents, up one U.S. cent.
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LIES! (Good article though...)
Posted by Rizwan Rafiq @ 2005-08-23 13:37
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