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Many people post stock picks and information about
companies that they are trying to either highlight if they are long on the stock or downgrade if they are
shorting the stock. However, if you go too far in what you say then you can be held liable in a
court of law. Below is a press release from the Canadian Corporate News that illustrates this point.
In other words...watch your mouth, its a dangerous weapon.
CORRECTION FROM SOURCE: American Eco and its Executives
Awarded $8.3 Million from Internet Libel Suit
HOUSTON, TEXAS--
In the news release transmitted December 14, 1998, the word
``liable'' in paragraph one should have read ``libel''. The complete and correct news release follows:
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 libel 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.
Copyright © 1998 Canadian Corporate News.
All rights reserved. All news releases provided by Canadian Corporate
News are copyrighted. Any forms of copying other than an individual user's personal reference without
express written permission is prohibited. Further distribution of these materials is strictly forbidden,
including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing
via a computer network or in a printed form.
This page posted to this Web Site, by
permission, from the Canadian
Corporate News.
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