David M. Robinson (175913)
ROBINSON AND SCHMIDT
1506 10th Street #316
Santa Monica, California 90401
(310) 260-5941
(310) 260-2400 FAX
Attorneys for plaintiff, Tim Luke Stefanich
LOS ANGELES COUNTY SUPERIOR COURT
WEST DISTRICT, STATE OF CALIFORNIA
TIM LUKE STEFANICH,
Plaintiff,
vs.
BARBARA SIMON, an individual; PRISTINE.COM, a California company of unknown formation; SILICON INVESTOR.COM, a California company of unknown formation; DOES 1-50,
Defendants. )
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Case No.:
COMPLAINT
1. Libel Per Se
2. Liber Per Quod
3. Intentional Infliction of Emotional Distress
4. Negligent Infliction of Emotional Distress
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Plaintiff complains and alleges against the defendants, and each of them, as follows:
JURISDICTION
1. At all times relevant hereto, plaintiff was a resident of County of Los Angeles, State of California.
2. At all times relevant hereto, defendant, Barbara Simon, was a resident of the State of Florida.
3. At all times relevant hereto, defendant, Pristine.Com, was a California business of unknown formation, with its principal place of business in the State of California.
4. At all times relevant hereto, defendant, Silicon Investor.Com , was a California business of unknown formation with its principal place of business in the State of California.
5. Plaintiff is without sufficient information at this time to specifically identify those defendants fictitiously named herein as Does 1-50. Plaintiff reserves the right to amend this Complaint to specifically identify those defendants as their identities become known.
6. At all times relevant hereto, the defendants, and each of them, were the agents, employees, servants, partners, or joint venturers of one another, and the acts and omissions which form the basis of this Complaint were committed or omitted in the course and scope of said agency, employment, servitude, partnership, or joint venture.
GENERAL ALLEGATIONS
7. Mr. Stefanich is a day-trader who regularly created and sent chat room messages through Silicon Investor.Com, an on-line day-trading information internet site.
8. Part of the service that Silicon Investor provides is a chat room for people trading stocks over the internet to discuss stocks, discuss information, and discuss each other’s success or failure in certain stock purchase and sale transactions.
9. Mr. Stefanich is known on the Silicon Investor chat room, and other chat rooms, as “Tim Luke.” Mr. Stefanich is one of the more well-known day-traders on the Silicon Investor site.
10. Mr. Stefanich has a regular following of approximately 1,000 investors that follow his investment choices and who regularly correspond with him through e-mail and telephone.
11. Defendant, Barbara Simon, is also a day-trader who regularly creates chat room messages through Silicon Investor. Her chat room name is “Jenna.”
12. Ms. Simon is also a partner at the on-line stock information site, defendant Pristine.Com, as well as founder and owner of the on-line stock information site, “Market/Gems.Com.”
13. Ms. Simon has a large following of investors with whom she regularly corresponds through the Silicon Investor chat room, as well as other chat rooms, via e-mail and by telephone. Ms. Simon’s following is also approximately !0,000 investors.
14. On or about March 18, 2001, Ms. Simon posted a message on the chat room message board on Silicon Investor and another on-line stock information chat room, InvestorHub.Com,[1] regarding Mr. Stefanich. In that message, Ms. Simon stated that Mr. Stefanich was a “pump and dumper” and a bankrupt on-line investor. A “pump and dumper” is a person who enters these chat rooms, and gives opinions, or “calls,” as to whether to buy or sell a stock when, in actuality, that person is taking the absolute reverse action of his “calls.” In other words, a “pump and dumper” is a person who gives an opinion to buy a certain stock in the chat rooms when they are selling the stock, or vice versa. This representation regarding Mr. Stefanich is obviously derogatory, given the fact that Mr. Stefanich has a significant on-line following, and given the fact that such a following, when acting on any given opinion could potentially change the value of any given stock.
15. Ms. Simon also stated that Mr. Stefanich was a bankrupt on-line investor. Again, this representation is clearly derogatory and made with the intent to injure Mr. Stefanich’s reputation in the on-line investing community. These statements were not the only statements made by Ms. Simon regarding Mr. Stefanich. Other statements include calling Mr. Stefanich a “scumbag,” “scum,” a “fungus,” and other derogatory phrases and words, all used in the clear attempt to injure Mr. Stefanich’s reputation in the on-line trading community and with the intent of causing emotional distress to Mr. Stefanich.
16. In fact, none of the representations regarding Mr. Stefanich were true. Mr. Stefanich is not bankrupt and does not attempt to influence the market with his following to his own personal ends.
17. At all times relevant hereto, defendants, Silicon Investor and Pristine.Com were aware of the representations being made by Ms. Simon. At the time, Ms. Simon was a partner of Pristine.Com and was a regular participant on Silicon Investor. Neither defendant Silicon Investor nor Pristine.Com has ever retracted the statements made by Ms. Simon, nor have they even offered apologies to Mr. Stefanich. Moreover, neither of the defendants have instructed Ms. Simon to cease and decist in her campaign of character assasination of Mr. Stefanich.
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FIRST CAUSE OF ACTION
(Libel per se against all defendants)
18. Plaintiff realleges paragraphs one through 17 as though set forth fully herein and incorporates those paragraphs by reference.
19. Mr. Stefanich is a private individual involved in the business of trading stocks over the internet.
20. On or about March 18, 2001, defendant Simon caused to be circulated an e-mail message on defendant Silicon Investor’s site, while acting in the course and scope of her duties as a partner of defendant Pristine.Com as an analyst and professional stock trader, in which defendant Simon accused Mr. Stefanich of being bankrupt. This accusation was false.
21. This statement was printed in on the Silicon Investor site and was distributed to thousands of day-traders, some of whom were very familiar with Mr. Stefanich and who followed his stock trades on a day-by-day basis. Defendant Simon made this statement to an audience who she knew would be particularly interested in this statements.
22. This statement made by defendant Simon and published on the site, resulted in Mr. Stefanich being held to ridicule, contempt, and which caused him to be avoided in his occupation. Mr Stefanich suffered injury as a result of this statement to his physical and mental well-being, manifesting themselves including, but not limited to, sleeplessness, headaches, anxiety, frustration, anger and nausea. Mr. Stefanich suffered injuries in an amount according to proof at trial, but in any event within the jurisdiction of this Court.
23. Defendant Simon made this statement with the intent to harass and injure Mr. Stefanich. As such, her actions were willful and malicious and warrant exemplary and punitive damages in an amount according to proof at trial, but in any event within the jurisdiction of this Court.
SECOND CAUSE OF ACTION
(Libel per quod against all defendants)
24. Plaintiff realleges paragraphs one through 23 as though set forth fully herein and incorporates those paragraphs by reference.
25. Mr. Stefanich is a private individual involved in the business of trading stocks over the internet.
26. On or about March 18, 2001, defendant Simon caused to be circulated on the Silicon Investor website, while in the course and scope of her duties as a stock analyst and professional stock trader for Pristine.Com, statements that Mr. Stefanich was a “pump and dumper.” This message was distributed to thousands of day-traders, many of whom followed Mr. Stefanich’s stock purchases and sales on a daily basis.
27. This statement was libel per quod in that the statement “pump and dumper” refers to a stock trader who attempts to influence various individuals to buy stocks, touting them as valuable and worthy of purchase, when in fact the trader is actually selling the stocks. A “pump and dumper” also applies to a person who attempts to influence various individuals to sell stocks, touting them as being worthless or about to experience a significant decline in value, when in reality that trader is buying the very stocks he is besmirching.
28. This terminology, when presented to persons in the stock trading industry, results in the accused being subjected to scorn, ridicule, and contempt, and further results in damage to the person’s reputation, including, but not limited to, avoidance by others in the profession.
29. This terminology is not commonly known, but is well-known in the stock trading environment, the very environment in which defendant Simon placed this information.
30. This statement is false. On the contrary, Mr. Stefanich is one of the day-traders who has a significant following who is willing to help new investors understand better the stock trading profession.
31. As a direct result of the false and injurious statement made by defendant Simon and published on defendant Silicon Investor’s website, Mr. Stefanich has suffered damages according to proof at trial, but in any event within the jurisdiction of this Court.
32. Defendant Simon made these representations with the sole intent of injuring, vexing, and harassing Mr. Stefanich. As such, her acts were willful and malicious and expose defendant Simon to exemplary and punitive damages according to proof at trial.
THIRD CAUSE OF ACTION
(Intentional Infliction of Emotional Distress against all defendants)
33. Plaintiff realleges paragraphs one through 32 as though set forth fully herein and incorporates those paragraphs by reference.
34. Defendant Simon engaged in conduct which was extreme and outrageous, and meant to injure Mr. Stefanich. In particular, defendant Simon made defamatory statements regarding Mr. Stefanich over the internet to a certain group of readers who were particularly interested in Mr. Stefanich and defendant Simon.
35. Defendant Simon further made these statements to this particular audience, knowing that these statements were false and misleading.
36. As a result thereof, Mr. Stefanich has suffered injury to his mental, emotional and psychological well-being, manifesting itself in anxiety, sleeplessness, frustration, anger, nausea, and other physical complaints, mental and emotional complaints.
37. As a direct result of the actions of the defendants, and each of them, Mr. Stefanich has suffered injury in an amount according to proof at trial, but in any event within the jurisdiction of this Court.
38. Moreover, the actions taken by Defendant Simon, and ratified by defendants Silicon Investor and Pristine.Com were made with the sole intent to injure, harass, and vex Mr. Stefanich, and as such, were intentional and malicious for which the defendants, and each of them, are subject to exemplary and punitive damages in an amount according to proof at trial.
FOURTH CAUSE OF ACTION
(Negligent Infliction of Emotional Distress against all defendants)
39. Plaintiff realleges paragraphs one through 38 as though set forth fully herein and incorporates those paragraphs by reference.
40. Defendant Simon owed a duty to Mr. Stefanich to conduct herself in a way which would not result in injury to Mr. Stefanich. Defendant Pristine.Com had a duty to monitor its partners to ensure that its partners were not engaging in conduct which was intended to result in injury to others. Defendant Silicon Investor had a duty to ensure that the information it distributed on its site would not injure any of its subscribers or readers.
41. Defendant Simon breached this duty when she intentionally and willfully made statements regarding Mr. Stefanich which she knew were false, and which she made with the intent to injure Mr. Stefanich.
42. Defendant Pristine.Com breached this duty when it allowed, and thereby ratified, Ms. Simon to post the aforementioned spurious, false, and libelous statements about Mr. Stefanich to an audience who was particularly aware of Mr. Stefanich and to whom the information might be specially received.
43. Silicon Investors breached this duty when they failed to monitor the statements it distributed to the particular audience to whom the false and malicious statements about Mr. Stefanich would have the most effect.
44. As a result of the breaches by the defendants, and each of them, Mr. Stefanich has suffered injury to his physical, mental, emotional , and psychological well-being, manifesting itself including, but not limited to, anxiety, anger, frustration, headaches, sleeplessness, nausea, and other physical, mental, emotional and psychological means, all in an amount according to proof at trial, but in any event, within the jurisdiction of this Court.
WHEREFORE, plaintiff prays against the defendants, and each them, as follows:
ON THE FIRST CAUSE OF ACTION
1. For compensatory damages in an amount according to proof at trial.
2. For general damages in an amount according to proof at trial.
3. For punitive damages in an amount according to proof at trial.
4. For reasonable attorney’s fees.
5. For costs of suit incurred herein.
6. For such other, further relief as this Court finds appropriate.
ON THE SECOND CAUSE OF ACTION
1. For compensatory damages in an amount according to proof at trial.
2. For general damages in an amount according to proof at trial.
3. For punitive damages in an amount according to proof at trial.
4. For reasonable attorney’s fees.
5. For costs of suit incurred herein.
6. For such other, further relief as this Court finds appropriate.
ON THE THIRD CAUSE OF ACTION
1. For compensatory damages in an amount according to proof at trial.
2. For general damages in an amount according to proof at trial.
3. For punitive damages in an amount according to proof at trial.
4. For reasonable attorney’s fees.
5. For costs of suit incurred herein.
6. For such other, further relief as this Court finds appropriate.
ON THE FOURTH CAUSE OF ACTION
1. For compensatory damages in an amount according to proof at trial.
2. For general damages in an amount according to proof at trial.
3. For punitive damages in an amount according to proof at trial.
4. For reasonable attorney’s fees.
5. For costs of suit incurred herein.
6. For such other, further relief as this Court finds appropriate.
Dated this ___ day of May, 2001.
ROBINSON AND SCHMIDT
__________________________________
David M. Robinson, attorneys for plaintiff,
Tim Stefanich.
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[1] InvestorHub.Com immediately removed the chat room message shortly after the particular message was published. Notwithstanding this fact, many on-line investors saw and read the message on InvestorHub.Com before it was removed. |
