Merger deserved it.
In the case of HITT, the Merger newsreleases initially failed to disclose that Merger was compensated by HITT. Only later did they fully disclose the compensation paid by the company.
Here's what Merger said in a May 18 PR for HITT:
Merger Communications, its officers, directors, and employees own 35,000 restricted shares of company common stock.
In another PR one week later, they replaced that sentence with disclosure that they are compensated by HITT:
According to the long-term agreement between Merger and the Company, Merger's compensation for its financial media relations services, which includes the preparation and distribution of press releases, consists of 10,000 shares of the Company's restricted stock for the first month. The Company will then pay $10,000 cash and 5,000 shares of the Company's restricted stock per month for the remaining 11-month period ending 3/15/01. |
