Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (247)	5/15/2000 4:26:00 AM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 12465

Re: Online Remarks Are Out of Line, Fonix Claims in Suit Against 10 on Internet (FONX) Online Remarks Are Out of Line, Fonix Claims in Suit Against 10 on Internet Fonix Files Suit to Stop Remarks BY STEVEN OBERBECK THE SALT LAKE TRIBUNE Some people are bad-mouthing Fonix Corp. on the Internet and the company wants it to stop. The Draper-based developer of speech-recognition technology earlier this month filed a lawsuit in Utah's 3rd District Court against 10 individuals -- identified only by their online aliases -- for defaming the company and its officers. "The lawsuit is aimed at trying to find out who these people are," said Paul Clayson, Fonix's vice president of sales and marketing. "We would like to find out whether their motives are financial or if they are acting out of frustration." Shares of Fonix Corp. soared above $10 a share in 1996 on company claims that it was about to revolutionize the computer industry with its breakthrough technology. The company, however, has been slow to deliver promised products. It has struggled financially. Its shares have plummeted and now are worth less than $1. Criticism has mounted in some circles. The unknown defendants, according to Fonix, are posting messages on Yahoo's online chat boards using monikers such as "The Lost Profit" and "Fedupwithfonix." If the goal of Fonix's lawsuit was to dampen such criticism, it does not appear to be working. "These crooks are just looking for any excuse to change the subject so 'angry, . . . shareholders' should not be posting even remotely threatening language," one defendant's message read after the lawsuit was filed. "These crooks will twist anything they can to their advantage so don't provide them with the opportunity." Such disparaging remarks particularly rankle Fonix, which contends much of the information is false and misleading and aimed at harming the company. "They say anything they want about us and it does not have to be true," Clayson said. "A lot of companies have been taking legal action to try and stop this kind of thing." Even good news sometimes is portrayed falsely, he said. Last week, Fonix announced Microsoft Corp. chose it as a "charter member" of the software giant's embedded systems partnership program. The developer program is intended to join companies that have Microsoft-compatible programs with businesses that make products such as handheld personal computers and smart cards. The Internet buzzed with the news. Not all of the talk was good, though. "Microsoft does not screen companies who sign up for development support programs. You idiot," The Lost Profit wrote. "Where is the revenue from the thing? There is none. There will be none. It's all a gigantic PR [public relations] effort by some swindlers with a history of doing exactly that." But Charlie Peterson, the program manager for the embedded tools partnership program, said Microsoft did screen the companies. Its selection of Fonix can be considered an endorsement of its programs, he said. "We selected companies that have tools and products that we considered promising and might be used to extend embedded systems," he said. Clayson declined to discuss what impact the development program might have on Fonix's short-term revenues, but said there would be some. Fonix's lawsuit is not the first time the company has been touchy about its online portrayal. In October 1996, when its shares traded in the $7 to $8 range, Fonix sued a Salt Lake City stock broker who had warned investors to be wary of the company and its claims of having developed a revolutionary voice-processing system for computers. Fonix sued the broker for libel, claiming its reputation had been damaged "causing a loss of confidence by the business and investing public." The stock broker subsequently apologized and as part of a settlement agreed to buy Fonix shares. Fonix shares closed Tuesday at 63 cents. ¸ Copyright 1990-2000, The Salt Lake Tribune tribaccess.com{BBCD}&recordswithhits=on&softpage=Doc_Frame_Pg&wordsaroundhits=3