Monday December 14, 11:26 am Eastern Time
Company Press Release
American Eco and its Executives Awarded $8.3 Million from Internet Libel Suit
HOUSTON, TEXAS--(BUSINESS WIRE)--Dec. 14, 1998--(NASDAQ:ECGOF - news; TSE:ECX. - news) AMERICAN ECO CORPORATION announced today that it had been awarded US$500,000 in punitive damages and US$75,000 in direct damages in its lawsuit against an individual who hid behind an Internet posting alias as ''PMKK1''. The judgment in favor of American Eco was for liable and slander through false Web and bulletin board postings about the Company and its executives. American Eco claimed that the falsehoods circulated on the Internet had damaged its reputation with the investment community and caused investors to short its publicly traded shares by creating doubt about statements made by American Eco management.
In addition, Mr. David Norris, former CFO of American Eco, was awarded $5.0 million in punitive and $2.75 million in direct damages in the same lawsuit against the individual operating under the alias of ''PMKK1'', for untrue allegations concerning Mr. Norris' executive history, which were posted on the Internet, resulting in his suspension from his position.
American Eco, Chairman & CEO Michael E. McGinnis, stated, ''American Eco will vigorously pursue untrue statements, rumors and attacks on its executives on the Internet, and intends to enforce this judgment within the full extent of collection. The Company intends to continue to take action against other individuals who use the Internet to post anonymous and false statements.''
American Eco is a leading North American provider of single-source industrial support and specialty fabrication services in the energy, pulp & paper, and power generating industries.
Except for the historical information in this News Release, the News Release includes forward looking statements that involve risks and uncertainties including, but not limited to quarterly fluctuations in results, the management of growth, competition and other risks. Actual results may differ materially from such information set forth herein.
Contact:
American Eco Corporation - Houston, Texas
Cindy Jackson, 888/774-3246
www.americaneco.com |
