Sheesh I missed all the fun today.
I agree with Frrol on the other site that CTIX does not have the identity of Mako. If Cellceutix knew who Mako was and had provable damages they would have initiated a suit. There are two roadblocks for a civil suit in this case:
1. The identity of Mako needs to be discovered.
If CTIX knows the identity this is not a road block. The problem here is that Mako's work is formulaic just like Pump Stopper/Terminator (we all think they one and the same). NNVC attempted to get Seeking Alpha to disclose the identity of Mako and the case was thrown out. The same would likely happen against Mako which is why no civil discover was ever attempted. For the same reason I believe it will not be attempted in this case.
2. Cellceutix must prove damages.
A civil libel suit requires damages. Market cap changes alone are not damages and assigning blame for them is very difficult. If we recover to yesterdays price tomorrow I don't think they could plead for damages.
A criminal case is a different story. Damages would not need to be proven by the SEC only that an article with untrue facts was written with the intent tank the stock. The opinion defense would still be a substantial road block (if it prevents discovery it could cause charges to be thrown out) but would not be a sure thing. The criminal case could go either way. Any evidence of conspiracy to commit securities fraud would work against Mako.
In summary, I think that both Mako articles are complete BS with the intent to defraud. Unfortunately I believe they have been carefully crafted in order to hide behind the precedent set in the NNVC vs Seeking Alpha case in order to block discovery and defend against securities fraud charges. I believe only solid evidence of conspiracy to commit securities fraud, if it exists, would be enough to have the SEC go after Mako.
I agree with Frrol on the other site that CTIX does not have the identity of Mako. If Cellceutix knew who Mako was and had provable damages they would have initiated a suit. There are two roadblocks for a civil suit in this case:
1. The identity of Mako needs to be discovered.
If CTIX knows the identity this is not a road block. The problem here is that Mako's work is formulaic just like Pump Stopper/Terminator (we all think they one and the same). NNVC attempted to get Seeking Alpha to disclose the identity of Mako and the case was thrown out. The same would likely happen against Mako which is why no civil discover was ever attempted. For the same reason I believe it will not be attempted in this case.
2. Cellceutix must prove damages.
A civil libel suit requires damages. Market cap changes alone are not damages and assigning blame for them is very difficult. If we recover to yesterdays price tomorrow I don't think they could plead for damages.
A criminal case is a different story. Damages would not need to be proven by the SEC only that an article with untrue facts was written with the intent tank the stock. The opinion defense would still be a substantial road block (if it prevents discovery it could cause charges to be thrown out) but would not be a sure thing. The criminal case could go either way. Any evidence of conspiracy to commit securities fraud would work against Mako.
In summary, I think that both Mako articles are complete BS with the intent to defraud. Unfortunately I believe they have been carefully crafted in order to hide behind the precedent set in the NNVC vs Seeking Alpha case in order to block discovery and defend against securities fraud charges. I believe only solid evidence of conspiracy to commit securities fraud, if it exists, would be enough to have the SEC go after Mako.
3
1
Innovation Pharmaceuticals Inc (IPIX) Stock Research Links
All content of my posts is my opinion and speculation. Do not treat anything I say as fact or actionable investment advice. I participate to challenge my investment thesis from any angle possible. Please do your own due diligence.
Current Positions:
Long CTIX.
Current Positions:
Long CTIX.
