Hop-On to Commence Litigation Regarding Manipulative Trading Abuses in Its Shares
IRVINE, Calif., Dec. 3 /PRNewswire-FirstCall/ -- Hop-On, the leading developer of disposable and fully recyclable cell phones, today announced that it intends to file a lawsuit against certain broker dealer firms for violation of fair-trading practices, negligence and/or fraud, share price manipulation, and other causes of action including naked short sales. Hop-On believes that the actions of certain broker dealers contravene the provisions of the National Association of Securities Dealers and the United States Securities and Exchange Act of 1934. Hop-On intends to pursue all available legal remedies including, without limitation, filing a complaint with the Securities and Exchange Commission.
The allegations center on illegal naked short selling conducted by the broker dealer firms to manipulate share price for profit and gain in violation of applicable securities laws.
When naked short selling is conducted it causes an artificial inflation of a company's trading float of common shares to wrongfully decrease or suppress the true market price of the company's stock. Under a naked short sale of stock, short positions are not declared, shares are not borrowed to cover the short sale, and shares are sold without delivering the stock to the purchaser. Ultimately, actual shareholder ownership is undermined by naked short sales of stock and failed deliveries of real certificates that artificially inflate ownership and devalue the price of securities.
The Company has retained the law firm of Jenkins & Gilchrist Parker Chapin LLP in New York in this matter. |
