NEWARK, N.J..--(BUSINESS WIRE)--July 2, 1999- Recent reports of bashers operating on the Raging Bull and Silicon Investor boards have led to multiple lawsuits. In most of these lawsuits, the bashers of the stocks in question have simply been working to make money when they successfully lower the price of the stocks, called shorting the stock. Short sellers are investors who sell
borrowed stock hoping to buy it back later at a lower price and pocket the difference. Such people could profit from "bashing," or criticizing, a stock in an online message board if their comments pushed the stock's price lower.
However, in this new development, a basher identified in one document as "boxer101" has been found to be in the employ of competitors of the companies he is bashing. Working with evidence of posts taken from the Raging Bull and Deja.Com boards, it appears boxer101, unnamed at this time, will bash stocks who belong to the competition on these boards in exchange for free stock or actual cash reimbursement for every day that the competitor's stock is held at or lower than the price of the previous day.
The Attorney General for the state of New Jersey is currently gathering evidence in this case. It was hinted by someone in the Attorney General's office that this case may be presented to a Grand Jury in the next two weeks with indictments expected one week after that. Our source also confirmed that as many as five defendants as expected to emerge from the Grand Jury. "We are expecting this to open up a very large ring," said the source on the condition of anonimity, "and do not expect it to end with the state of New Jersey." |
