Re: 12/12/00 - [NVEI} Bloomberg: New Visual Sues Internet Posters for Defamation
New Visual Sues Internet Posters for Defamation (Update1)
By Joyzelle Davis
San Diego, Dec. 12 (Bloomberg) -- New Visual Entertainment Inc. filed a lawsuit seeking damages from anonymous individuals for posting ``defamatory and derogatory information'' about the company on Internet bulletin boards.
The messages were first posted on the ``Raging Bull'' bulletin board about a year ago. They included allegations that the San Diego-based developer of broadband transmission technology had falsely announced a $1 million investment and had violated U.S. Securities and Exchange Commission disclosure rules, the suit says. The suit also says anonymous posts falsely said management was taking money from the company.
``These allegations are likewise false or were made recklessly without a good-faith belief in their veracity,'' the complaint said. The suit seeks general and punitive damages from the 50 anonymous posters named in the suit.
Raging Bull, a Web site that features message boards on individual companies along with stock quotes and commentary, is a wholly owned subsidiary of AltaVista Co. The majority owner of AltaVista is Andover, Massachusetts-based CMGI Inc., which owns a variety of business-to-business and business-to-consumer Internet companies. The Internet company is not named as a defendant in the lawsuit, filed yesterday in San Diego Superior Court.
Other Suits
Several other companies, including Titan Corp., Qualcomm Inc. and Credit Suisse First Boston, have sued Internet posters, alleging defamation.
ZiaSun Technologies Inc. in October settled two libel lawsuits against four short-sellers it had accused of manipulating the Internet venture-holding company's stock price. Under the accord, both sides agreed to stop talking about each other and one defendant received $60,000 from ZiaSun's former president and a company promoter.
The New York Stock Exchange in August sued 10 unidentified people for allegedly impersonating the exchange's Chairman Richard Grasso on Raging Bull bulletin boards.
New Visual began as a maker of short films and early this year started working on a process it claims will provide high- speed Internet connections through the ordinary copper wires of local phone companies.
New Visual's shares fell 6 cents to $4.94. Its shares hit a 52-week high of $31 on Feb. 22.CMGI shares, which traded at a 52- week low of $9.50 on Nov. 30, rose 25 cents to $11.88.
quote.bloomberg.com |
