Fromm MMI Newswire on Supreme Court decision.
http://aminewswire.com/stories/510724790-nake...reme-court
Excerpts from the MMI analysis:
"In 2012, businessman Greg Manning sued Merrill Lynch and other financial institutions in New Jersey state court for purposefully devaluing his company through systematic “naked” short-selling — a term used to describe selling a stock a seller does not own and has not borrowed. In standard short sales, traders either borrow a stock or make sure that it can be borrowed prior to selling it short in the hope that its value will fall before the transaction must be covered.
Manning’s claims against the financial institutions include the New Jersey Racketeer Influenced and Corrupt Organizations (RICO) Act along with common-law claims for unjust enrichment, interference with economic advantage and contractual relations, breach of contract, breach of the covenant of good faith and fair dealing, and negligence.
"False rumors can lead to a loss of investor confidence," the commission reported at the time. "Such loss of investor confidence can lead to panic selling, which may be further exacerbated by ‘naked’ short-selling. As a result, the prices of securities may artificially and unnecessarily decline well below the price level that would have resulted from the normal price discovery process. If significant financial institutions are involved, this chain of events can threaten disruption of our markets.”
"Manipulation by false rumors and naked short-selling has taken a serious toll on emerging industries. Biotechnology industry insiders have for years pleaded with the SEC to block the illegal short selling and false whisper campaigns that plague the industry. Smaller technology-driven companies frequently lack the resources to deal with attacks that drive down stock prices, crippling research and development budgets.
Monday's ruling could strengthen smaller innovative companies that are not situated to challenge investment institutions at the federal level."
Several of the people on this board probably ought to read the Supreme Court decision and perhaps even consult with a lawyer to discuss any potential liability flowing from deliberate share price suppression strategies coupled with spreading false rumors.
http://aminewswire.com/stories/510724790-nake...reme-court
Excerpts from the MMI analysis:
"In 2012, businessman Greg Manning sued Merrill Lynch and other financial institutions in New Jersey state court for purposefully devaluing his company through systematic “naked” short-selling — a term used to describe selling a stock a seller does not own and has not borrowed. In standard short sales, traders either borrow a stock or make sure that it can be borrowed prior to selling it short in the hope that its value will fall before the transaction must be covered.
Manning’s claims against the financial institutions include the New Jersey Racketeer Influenced and Corrupt Organizations (RICO) Act along with common-law claims for unjust enrichment, interference with economic advantage and contractual relations, breach of contract, breach of the covenant of good faith and fair dealing, and negligence.
"False rumors can lead to a loss of investor confidence," the commission reported at the time. "Such loss of investor confidence can lead to panic selling, which may be further exacerbated by ‘naked’ short-selling. As a result, the prices of securities may artificially and unnecessarily decline well below the price level that would have resulted from the normal price discovery process. If significant financial institutions are involved, this chain of events can threaten disruption of our markets.”
"Manipulation by false rumors and naked short-selling has taken a serious toll on emerging industries. Biotechnology industry insiders have for years pleaded with the SEC to block the illegal short selling and false whisper campaigns that plague the industry. Smaller technology-driven companies frequently lack the resources to deal with attacks that drive down stock prices, crippling research and development budgets.
Monday's ruling could strengthen smaller innovative companies that are not situated to challenge investment institutions at the federal level."
Several of the people on this board probably ought to read the Supreme Court decision and perhaps even consult with a lawyer to discuss any potential liability flowing from deliberate share price suppression strategies coupled with spreading false rumors.
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