Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Food for thought:
Is It Really Defamation To Call A CEO ‘Scum,’ A ‘Turd’ And A “Clown’?
Jan. 11 2011 - 5:04 pm | 1,520 views | 1 recommendation | 4 comments
By WILLIAM P. BARRETT
Image via Wikipedia
Even though it’s publicly traded, you’ve probably never heard of Lecere Corp., a tiny, two-year-old start-up firm in Portland, Ore. that is developing restaurant-management software. One reason might be because it has nil revenue. Another is that the firm is listed only on the somewhat- dodgy Pink Sheets, last trading at 22 cents a share.
But the company did draw the attention of contributors on InvestorsHub.com, one of many investor Web sites that that allow posting of anything-goes comments on discussion forums. Although probably no worse than what is said online single every day about President Obama, the comments cast aspersions about Lecere and its CEO, James B. Morris.
But really, is it actionable if the CEO is called “scum,” a “turd” and a “clown”?
We may find out. This morning, Lecere said it filed a defamation lawsuit in Portland federal court against seven defendants called John Doe 1 to 7. The company issued a press release touting its move and calling it an action of last resort. “To have a few individuals manipulating our stock price through defamation of the company is not fair to the other shareholders,” Morris was quoted as saying. “We have tried everything possible to get these people to stop publishing defaming information.”
The lawsuit seeks $2 million and a court order prohibiting the unnamed defendants from “publishing any future statements regarding Lecere”–apparently, even if they are true.
So what exactly was said?
According to Lecere’s own lawsuit–now a very public record–John Doe 1, who posts under the screen name “sheck,” said on December 30 that Lecere was “dead,” “will be good only for the d-team flippers” and that “there is nothing of value left.” Morris, the poster declared, was a liar. John Doe 2, whose screenname is “advantagetrading,” posted that Lecere had gone bankrupt and that Morris was not only a “clown,” but “incompetent.” John Doe 3 (“TavyCat”), John Doe 6 (“bradydrums”) and and John Doe 7 (“fb481777?) questioned Morris’s ethics and propriety.
It was John Doe 4, a/k/a”riva5,” who declared Morris “scum,” and John Doe 5, who under the name “donclc1? said Morris was a “turd.” The lawsuit explicitly listed both of these as examples of “false statements”.
The lawsuit says the comments were false, “diminished investors’ confidence in Lecere,” lowered the stock price and prevented the company from raising further capital. ” That it could surely use. Lecere’s latest available financial statement, for September 30, listed a balance-sheet net worth of $54,000. After a recent and unusual 1-for-10,000 reverse stock split, the market cap appears to be just $235,000.
The company did not immediately return a call seeking comment.
Besides the fact that the blogosphere is likely to erupt over this attack on the way it normally operates, the lawsuit would appear to have some legal problems. Many of the complained-about comments appear to be non-actionable opinion or forward predictions. It isn’t clear if the company can sue over comments about the personal characteristics of its CEO, who is not a party to the lawsuit. A request to bar all future speech, whether or not true, might be considered overbroad.
And to proceed, Lecere likely would have to convince a court to issue a subpena to InvestorsHub.Com Inc. for the unique Internet addresses used by the offending posters. The web site is not a named party and under U.S. law is not liable for postings of third parties. InvestorsHub.Com Inc. is a wholly owned subsidiary of of ADVFN PLC, which trades on the London Stock Exchange
thanks for sharing.
Magic
Kels, if you know something that the rest of us would like to know, then please share it.
Magic
Come on, surely someone out there needs to take a tax loss, just sell me a few k and we'll both be happy.
Magic
I'm trying to buy, but noone is willing to sell to me @ .12 .
Magic
And high for the 27th was .088. Not much of a gap, but betcha it fills.
Magic
Yep, 12/28.
We need a trade at .088 to close the gap so this can run again.
JMO, Magic
No one gonna mention the gap this morning? I expect it will be filled early tomorrow, then we can tackle .11, imo, but not until.
Magic
USC, ygm @lycos.
Magic
My PPHM been gettin some serious lovin the last few days, especially today.
Magic
Wonderin if they're gonna drop down and take my .12 offer before the close. Hope so.
Magic
My Jan $5 calls that I bought last summer could still get some life in em if this continues.
Magic
USC, any chance you are considering a run at getting control of this company so it can be put up for sale?
Magic
5cap, the moderators job is to enforce to TOS, nothing more or less. Of course, us longs would prefer other longs hold that position(s), but I have no problem with anyone stating their opinions about the stock as long as it is does rationally and doesn't rise to the level of bashing or falsely pumping.
JMO, Magic
Since the SOL begins on the date of the alleged violation, it is widely believed that the SOL has expired long ago. That said, you are correct that the 5 year anniversary of the raid would have to be the absolute drop dead date for expiration.
Magic
I just wish he would leave someone in charge so this company could be sold as a shell. As it stands there is no one to negotiate a deal with. Further more, there are postential assets which might enhance the shell value.
Magic
seek, yes it is, me, farrel, and brwnwtrpilot agree.
Magic
Adonis, I doubt. In todays market I would be very surprised if Premium had a net profit for the year. I would be ASTOUNDED if they had a taxable profit over $100k.
Magic
Very wise redburns. I have knowledge of the manufactured housing industry from top to bottom, and I expect Premium to be only marginally profitable, if at all, relatively speaking.
Magic
Thanks for the update AA.
magic
Hope you made sure to share that with HQ. How the heck is anyone going to know to go to the esafe site if there is nothing on the basic NRA site and NRA is doing nothing else to promote it? There should be a blurb and a link on the NRA site under member benefits.
Magic
Tulaz, et al, I spent a good bit of time on the NRA website last night, and did not find any mention or link whatsoever re MMRF, ESAFE, or any related info. Nor have I ever received any mention in the multiple mailings I receive from NRA regularly. Any idea why not?
Magic
Why would they pay that when they could just buy the whole company for a quarter a share?
TF, it is my understanding that Premium is a manufactured home sales business, not a builder supplier. Depending on a lot of the usual factors, it could be mildly profitable or a major loser. I have experience here, but would need a good bit more basic info to have an opinion.
Magic
We're already on their website with video links, etc. Pretty cool.
http://www.managemyasc.com/solutions
Magic
MMRF - overdue for a run and lots of potential news on the short term horizon. Don't say nobody gave you a heads-up before it ran.
Long term dollars likely.
JMO, Magic
So when they license out a portion of the biotech assets for 20 - 30 Million up front and a recurring annual fee, effectively quadrupling the market value of the company overnight, you are okay with having missed the boat?
Magic
I held the price above .06 all afternoon yesterday, someone else needs to step up today.
Magic
Had to pull my order, wait for b & a to drop, then reenter to get 25,000 at .062. Average now below .10, so ready to rock.
Magic
bid was .056 so I put in an order at .o6, which has yet to fill. May have to raise it since it raised the bid to .06 x2.
Magic
So the fact that the Statute of Limitations has long sinced expired on any possible action by DOJ, et al, has no relevance to you? Apparently not to some others as well. The FACT that no charges were ever filed, the SOL has expired to file any charges, and the records were returned, is or should be sufficient clearance for anyone.
Magic
Just to keep the thread intact, here's my deleted post without the supposed offending phrase:
"TOB, et al. I agree with your rational thinking about trading. As I have previously posted on this and other boards, my process has the same effect, but is much simpler.
Every morning when I open my portfolio, I make a conscious decision about each of the positions I hold. I ask myself one simple question: If I did not own this stock, would I buy it today at the current price? If the answer is no, then I sell. If yes, then I hold or possibly buy more. Except for possible tax consequences, my cost basis and time held are irrelevent. The stock is either a good investment(imo) going forward, or not, period."
Magic
Yes, but the shares he bought after the initial payout were priced below what the FINAL payout is going to be. He will be ahead on those as well.
Magic
jermart & exceo, Mr. Hill is obviously just playing the arbitrage. He has bought shares that were for sale at less than the anticipated dividend distributions. After the final payout, he will have received more than his cost.
Magic
"Or, it could be that they want the little guys to do the initial drilling and if it looks promising they can buy them out in 10 years or so before development"
What are they going to use for money??
Either they get some heavy hitters in, or there will be no drilling in the EEZ. Much more seismic needs to be done before drilling can even be considered anyway.
Deep drilling takes deep pockets.
Magic
This could be the most important info:
"Total is already present in Malaysia with a 70% interest together with Petronas Carigali (30%) in a Production Sharing Agreement signed in 2008 which covers the Block PM303 and PM324, located offshore Peninsular Malaysia. Total operates these two blocks where a seismic campaign was shot in 2009 and where a high-pressure/high temperature exploration drilling campaign will start in 2011."
Magic
Just a thought:
STP recognizes Taiwan, thus does not have official diplomatic relations with China. This embarasses and irritates China.
China buys a controlling interest in STP's future income.
China can easily afford to sit on this interest for a few years, if necessary, waiting for STP to come to them asking that they proceed with development so STP can begin receiving income.
China takes all possible action to play downplay the value of STP's assets and drag out any development plans.
China is waiting for STP to throw TAiwan under the proverbial bus to pursuade China to proceed with development.
HEY STP! GIVE UP THE MEASLY $10MM YOU GET FROM TAIWAN ANNUALLY SO CHINA WILL GET ON WITH MAKING YOU ONE OF THE RICHEST COUNTRIES PER CAPITA IN THE WORLD.
Magic
aero, their balance sheet is not nearly as good as HTLJ, among other things.
Magic
Just the opposite, imo. Money talks.
Magic