Total Renal Sues Internet Users, Alleges Misleading Postings
Torrance, California, Aug. 24 (Bloomberg) -- Total Renal Care Holdings Inc., the world's second-largest dialysis services provider, sued four anonymous Internet users, joining a growing number of companies trying to combat misinformation on the Web.
Total Renal and its former chairman and chief executive, Victor M.G. Chaltiel, filed the lawsuit in a California state court in Los Angeles asking for a retraction and public apology from the defendants. The Torrance, California-based company alleges the four, known only by Internet pseudonyms, placed false and misleading information about the company on a Yahoo! Inc. message board.
Total Renal joins other companies that are suing to stop the posting of misleading information on boards maintained by Yahoo and on Go2Net Inc.'s Silicon Investor Web site. Total Renal's shares have fallen 71 percent this year and in recent months the company has become a favorite for short-sellers, or investors who try to profit from a decline in a stock price.
The lawsuit alleges defendants INSIDER_EYE, ALLWHIP, BAYNEPHRON13847 and MD1493 posted false or defamatory messages for the purpose of manipulating the stock. It cited examples of INSIDER_EYE writing ``I want to buy back in but I feel there is something fishy. Cooking the Books, Over billing. And to think the least of there (sic) problems is the SEC issue.'
Other postings made reference to executives leaving the company and to ``expect more to follow.' The lawsuit also alleges the postings libeled Chaltiel, who earlier this month resigned from the company.
The lawsuit seeks to uncover the identities of the defendants and obtain apologies and unspecified damages.
Short sellers attempt to profit by borrowing shares from an investor who is holding the stock for the long term. The shares are then sold and theoretically bought back at a lower price to return to the long-term investor.
Companies that have sued anonymous Internet users include M.H. Meyerson & Co., Xircom Inc., Carnegie International and Stone & Webster Inc.
Total Renal's shares fell 3/16 to 8 1/2.
quote.bloomberg.com
- Jeff |
