Remember Craig Crawford who was always shorting FIBR, I understand that he went bankrupt trying that! AURIC GOLDFINGER has been the latest vocal short but it is interesting how quiet Auric is at this time of great need for those short on FIBR. It could be that he is being sued for posting defamatory statements against ZSUN.
biz.yahoo.com
Friday July 2, 4:00 am Eastern Time
Company Press Release
SOURCE: ZiaSun Technologies Inc.
ZiaSun Files Second Defamation Lawsuit
SAN DIEGO, July 2 /PRNewswire/ -- ZiaSun Technologies Inc. (OTC Bulletin Board: ZSUN - news; ziasun.com) announced today that the company has filed a lawsuit against eight individuals, alleging that their postings on the Internet bulletin board, Silicon Investor, contained defamatory statements intended to manipulate the company's share price.
ZiaSun filed the case in the United States District Court for the Western District of Washington. Silicon Investor, operated by Go2Net, is not named as a defendant.
Although similar in nature, the lawsuit is unrelated to that recently filed by ZiaSun in Florida against Financialweb.com. Both suits are part of the company's ongoing policy not to tolerate the dissemination of defamatory information on the Internet regarding the company, its officers, directors or shareholders.
For more information please contact Investor Relations at (800) 773-7317.
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include uncertainties in the market, competition, legal, success of marketing efforts and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release.
Message 10372435
To: R.E.B. (3144 )
From: Francois Goelo
Saturday, Jul 3 1999 12:23AM ET
Reply # of 3162
ZSUN IS A SCAM!!!! THEY'RE MAIN BUSINESS IS TO SELL STOCK!!! THE
MANAGEMENT AND THE PROMOTERS SHOULD BE IN PRISON!!!
To: Francois Goelo (2232 )
From: realmoney Wednesday, Jun 2 1999 11:26AM ET
Reply # of 2829
ZSUN IS A SCAM!!!! THEY'RE MAIN BUSINESS IS TO SELL STOCK!!! THE MANAGEMENT AND
THE PROMOTERS SHOULD BE IN PRISON!!!
Now, a REAL company would surely sue me for such slanderous remarks. A fake bogus stock
selling scam would be too afraid of my lawyers to do anything!! So the challenge has been made.
I say they are slime and their silence will confirm it!!!!!!
===========================================================
REALMONEY:LOOK, IT WOULD SEEM THAT #ZSUN# IS A REAL COMPANY BECAUSE,
AS YOU SAID, IT'S SUING YOU:
===========================================================
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
ZIASUN TECHNOLOGIES, INC., a Nevada corporation, and ANTHONY L. TOBIN,
Plaintiffs,
vs.
Defendant FLOYD D. SCHNEIDER aka "FLODYIE;"
STEPHEN N. WORTHINGTON aka "AURIC GOLDFINGER;"
TOM LIVIA aka "REALMONEY;"
PAUL HARARY aka "TRADER14U;"
MIKE MORELOCK aka "CM BURNS;"
DEFENDANT JOHN or JANE DOE 1 aka "JJS64;"
DEFENDANT JOHN or JANE DOE 2 aka "GUS SIDERIS;"
DEFENDANT JOHN or JANE DOE 3 aka "ALPINE SLEUTH."
Defendants.
No.:
COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF AND JURY DEMAND
I. PRELIMINARY STATEMENT
1.1. This is a complaint for securities fraud, defamation, violation of Washington's Consumer Protection Act, violation of Washington's Criminal Profiteering Act, violation of the Federal RICO statute, and intentional interference with a business expectancy. The claims arise out of the defendants' use of the Internet to disseminate false and defamatory information regarding plaintiffs.
II. PARTIES
2.1 Plaintiff ZiaSun Technologies, Inc. is a Nevada corporation with United States headquarters in San Diego, California.
2.2 Plaintiff Anthony L. Tobin is the President of ZiaSun and an individual resident of Hong Kong.
2.3 Defendant Floyd D. Schneider is an individual residing in Saddle River, New Jersey. Defendant Schneider uses the alias "flodyie" when communicating over the Internet.
2.4. Upon information and/or belief, the actual identity of the Defendant using the alias "Auric Goldfinger" in his communications over the Internet is Stephen N. Worthington residing in San Francisco, California.
2.5 Upon information and/or belief, the actual identity of the Defendant using the alias "realmoney" in his communications over the Internet is Tom Livia residing in Boca Raton, Florida.
2.6 Upon information and/or belief, the actual identity of the Defendant using the alias "trader14u" in his communications over the Internet is Paul Harary residing in Boca Raton, California.
2.7 Upon information and/or belief, the actual identity of the Defendant using the alias "C M Burns" in his communications over the Internet is Mike Morelock residing in Greenwood, Arkansas.
2.8 Defendant Doe 1 is an individual of unknown residency using the alias "jjs64" in his communications over the Internet.
2.9 Defendant Doe 2 is an individual of unknown residency using the alias "GUS SIDERIS" in his communications over the Internet.
2.10 Defendant Doe 3 is an individual of unknown residency using the alias "Alpine Sleuth" in his communications over the Internet.
III. BACKGROUND
3.1 Plaintiff ZiaSun Technologies, Inc. is an Internet related company providing services to consumers located primarily in Asia. Its business focuses on e-mail services, Internet advertising, investment research, online stock trading, and e-commerce operations management. Plaintiff Anthony L. Tobin is the President of ZiaSun.
3.2 ZiaSun is a publicly traded company traded on the OTC. The ZiaSun trading symbol is "ZSUN."
3.3 Silicon Investor is an online investor website. It is owned by Go2Net, Inc., a Washington orporation, with its principal place of business in Seattle, Washington.
3.4 The Silicon Investor website includes trading information, stock information and provides message boards for its members.
3.5 Members of Silicon Investor can post statements on the Silicon Investor message boards relating to specific stocks. ZiaSun is the subject of at least three Silicon Investor message boards.
3.6 Each member's posting is subject to the Silicon Investor Terms of Use Agreement, which each member must agree to before initiating membership. Under the Silicon Investor Terms of Use Agreement, each member agrees to submit to the personal jurisdiction of the State of Washington for any cause of action arising out of or relating to the service.
3.7 Beginning in the fall of 1998, Silicon Investor members began posting statements about ZiaSun on Silicon Investor message boards.
3.8 In November 1998, a cadre of individuals ("posters") consisting of the defendants began using Silicon Investor's ZiaSun message boards for a defamatory campaign ("cybersmear") against ZiaSun and ZiaSun officers and directors, including ZiaSun President, Anthony Tobin. The
cybersmear campaign involved the defendants posting false and defamatory information about ZiaSun, ZiaSun officers and directors, and plaintiff Tobin.
3.9 The false information being disseminated by the defendants includes but is not limited to allegations of criminal behavior, involvement in pornography, improper financial interests, improper promotion techniques and dissemination of false corporate and misleading information to the public. The cybersmear campaign continues through the present day.
3.10 As a result of defendants' false statements, ZiaSun share prices have dropped substantially. Damage has directly resulted to the company, its investors and its officers and directors.
3.11 Upon information and/or belief, defendants' cybersmear campaign is intended to negatively impact ZiaSun stock prices to defendants' financial benefit.
3.12 Upon information and/or belief, defendants' are working in concert to drive ZiaSun stock prices down for the defendants' collective benefit.
3.13 Upon information and/or belief, defendants maintain "short" positions in ZiaSun stock, and have a direct financial interest in driving ZiaSun share prices down.
IV. JURISDICTION AND VENUE
4.1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. §1331 because the district courts have original jurisdiction of all civil actions arising under the laws of the United States.
4.2. This Court has jurisdiction over the state law claims set forth herein pursuant to 28 U.S.C. § 1367, which provides that when the District Court has original jurisdiction, the District Court shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy.
4.3. This Court has specific personal jurisdiction over non-resident defendants pursuant to the Washington long arm statute, RCW §
4.28.185 (1)(b), and the Due Process clause of the Fourteenth Amendment to the United States Constitution. By initiating activities within the State of Washington and consenting to judgment there, defendants have purposefully availed themselves of this Court's jurisdiction, the claims arise out of defendants' contacts within the state, and the exercise of jurisdiction is reasonable.
4.4. This jurisdictional district is a proper venue pursuant to 28 U.S.C. § 1391(b)(2) because a substantial part of the events giving rise to the claims occurred in Seattle, Washington.
V. FIRST CAUSE OF ACTION: SECURITIES FRAUD (17 C.F.R. §240.106.5)
5.1 Paragraphs 1.1 through 4.4 are incorporated as if fully set forth herein.
5.2 The defendants posted misleading statements about plaintiffs ZiaSun and Anthony L. Tobin.
5.3 The statements disseminated by defendants include but are not limited to false allegations of criminal behavior, involvement in pornography, improper financial interests, improper promotion techniques, and dissemination of false and misleading company and other information to the public.
5.4 The statements disseminated by defendants were material because a reasonable investor would attach importance to them in determining his/her investment strategy with regards to ZiaSun stock.
5.5 Defendants' statements were made in connection with the purchase and/or sale of securities in the United States.
5.6 Defendants' statements were made with scienter because they were disseminated with the purpose of negatively impacting ZiaSun stock for defendants' own benefit.
VI. SECOND CAUSE OF ACTION: SECURITIES FRAUD (RCW.21.20 ET SEQ.)
6.1 Paragraphs 1.1 through 5.6 are incorporated as if fully set forth herein.
6.2 Defendants were involved directly or indirectly in connection with the offer, sale or purchase of ZiaSun securities.
6.3 Defendants made untrue statements of material fact with regards to ZiaSun Technologies, Inc. and ZiaSun executives.
6.4 Defendants' statements were made in connection with the purchase and/or sale of securities.
6.5 Defendants are civilly liable under RCW §21.20.430(2).
VII. THIRD CAUSE OF ACTION: SECURITIES FRAUD (RCW 21.20.ET SEQ.)
7.1 Paragraphs 1.1 through 6.5 are incorporated as if fully set forth herein.
7.2 The statements disseminated by defendants on the Silicon Investor message boards were false and/or made with malicious intent.
7.3 The statements disseminated by defendants on the Silicon Investor message boards were unprivileged communications.
7.4 Defendants' dissemination of the statements on the Silicon Investor message boards was negligent and/or made with reckless disregard for the truth.
7.5 The statements disseminated by defendants on the Silicon Investor message boards caused substantial damages to plaintiffs.
VIII. FOURTH CAUSE OF ACTION: WASHINGTON CONSUMER PROTECTION ACT VIOLATION (RCW 19.86.ET SEQ)
8.1 Paragraphs 1.1 through 7.5 are incorporated as if fully set forth herein.
8.2 Defendants' acts or practice of disseminating false and misleading statements on the Silicon Investor message boards are unfair or deceptive.
8.3 Defendants' dissemination of the false and misleading statements on the Silicon Investor message boards occurred in trade or commerce.
8.4 Defendants' dissemination of the false and misleading statements on the Silicon Investor message boards has a public interest impact.
8.5 Plaintiffs suffered injury to their business or property as a direct result of Defendants' dissemination of the false and misleading statements on the Silicon Investor message boards.
8.6 Plaintiffs' damages were caused by, and a direct result of, defendants' dissemination of the false and misleading statements on the Silicon Investor message boards.
IX. FIFTH CAUSE OF ACTION: INTENTIONAL INTERFERENCE WITH BUSINESS EXPECTANCY
9.1 Paragraphs 1.1 through 8.6 are incorporated as if fully set forth herein.
9.2 Plaintiffs have, and have had, valid contractual business expectancies of which Defendants have, and have had, knowledge.
9.3 By disseminating the false and misleading statements on the Silicon Investor message boards, defendants intentionally interfered with plaintiffs contractual relationships and/or business expectancies, and induced or caused the breach or termination of those relationships and/or expectancies.
9.4 By disseminating the false and misleading statements on the Silicon Investor message boards, defendants interfered for an improper purpose and or used improper means.
9.5 Plaintiffs' damages are a direct result of defendants' conduct.
X. SIXTH CAUSE OF ACTION: FEDERAL RICO (28 USC §1962)
10.1 Paragraphs 1.1 through 9.5 are incorporated as if fully set forth herein.
10.2 Upon information and/or belief, defendants are part of an enterprise, working in concert for the same purpose.
10.3 Defendants' enterprise conducts its activities via the Internet, and affects interstate commerce.
10.4 Defendants are associated with the above-described enterprise.
10.5 Defendants participated either directly or indirectly in the conduct of the affairs of the enterprise.
10.5 Defendants participated in the commission of at least two racketeering acts.
10.6 By reason of defendants' acts set forth in Paragraphs 10.2 through 10.5, defendants have caused injury to plaintiffs' business or property.
XI. SEVENTH CAUSE OF ACTION: WASHINGTON'S CRIMINAL PROFITEERING ACT (RCW 9A.82 ET SEQ)
11.1 Paragraphs 1.1 through 10.6 are incorporated as if fully set forth herein.
11.2 Plaintiffs sustained injury to their business and property by act of defendants' criminal profiteering that is a pattern of criminal profiteering.
11.3 Defendants' act of securities fraud is criminal profiteering under RCW §9A.82.060(4). XII. EIGHTH CAUSE OF ACTION: INJUNCTIVE RELIEF (RCW §7.4.ET SEQ.)
12.1 Paragraphs 1.1 through 11.3 are incorporated as if fully set forth herein.
12.2 Plaintiffs have clear legal and equitable rights which are being irreparably harmed by virtue of defendants' acts, as stated above.
12.3 By virtue of defendants' acts, as stated above, plaintiffs have a well grounded fear of immediate invasion of their legal and equitable rights.
12.4 Defendants' acts complained of are resulting in and will result in actual and substantial injury to plaintiffs for which there is no adequate remedy at law.
12.5 Plaintiffs' are entitled to a temporary and permanent injunction against each defendant, enjoining him from engaging in the acts set forth above.
XIII. DAMAGES
13.1 Defendants' conduct directed at plaintiffs was malicious, willful, wanton, reckless, vexatious, oppressive, intentional, and/or in blatant disregard of the truth and/or safety and rights of others. Although subject to jurisdiction in Washington, each defendants' most significant relationship to the controversy exists in their respective home states. Plaintiffs are therefore entitled to an award of enhanced compensatory damages and punitive damages pursuant to the laws of each defendants' home state.
13.2 The effect of defendants' false and misleading statements on the Internet has resulted in direct harm to ZiaSun Technologies' reputation, share values, business relationships, contracts and dealings with others, in an amount to be proven at trial.
13.3 The effect of defendants' false and misleading statements has resulted in direct harm to Anthony L. Tobin's reputation, business relationships, contracts and dealings with others in an amount to be proven at trial.
13.4 The defendants, through their dissemination of false and misleading statements about plaintiffs, have improperly made significant profits, all of which should be disgorged.
13.5 Defendants, through their false and misleading statements about ZiaSun and Mr. Tobin, have caused plaintiffs to incur significant direct consequential damages, including attorney's fees, costs, employment time and other such damages in an amount to be proven at trial.
WHEREFORE, Plaintiffs ZiaSun Technologies, Inc. and Anthony L. Tobin request that this Court grant the following relief:
(a) Judgment for compensatory damages, together with interest thereon, at legal rate, plus additional and consequential damages, in an amount to be determined at trial;
(b) Judgment for enhanced compensatory damages and punitive damages according to the law where each defendant's acts were undertaken;
(c) Judgment for enhanced damages as authorized by R.C.W. 19.86 et seq;
(d) Judgment for costs incurred herein, including attorneys' fees, to the fullest extent allowed by law;
(d) Judgment to permanently enjoin the defendants from issuing malicious, false and misleading statements concerning plaintiffs;
(e) Such other and legal and equitable relief as this court may deem just and equitable.
RESPECTFULLY SUBMITTED this ____ day of June, 1999.
WEISS, JENSEN, ELLIS & HOWARD
__________________________________
Christopher H. Howard, WSBA# 11074
Brian L. Myers, WSBA# 14467
Patrick S. Pearce, WSBA# 20857
of Attorneys for Plaintiffs
DEMAND FOR JURY
Pursuant to Federal Rule of Civil Procedure 38, these plaintiffs demand trial on all issues pertaining to it in this matter be by a jury of six (6).
DATED this ______ day of June, 1999.
WEISS, JENSEN, ELLIS & HOWARD
__________________________________
Christopher H. Howard, WSBA# 11074
Brian L. Myers, WSBA# 14467
Patrick S. Pearce, WSBA# 20857
of Attorneys for Plaintiffs
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