DECLARATION OF TIMOTHY G. DIXON
SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SAN DIEGO
“B. THE ONLINE POSTERS DISTRIBUTING LIBELOUS AND DEFAMATORY STATEMENTS.
12. Stocktwits.com, InvestorsHub.com Inc., and yahoo.com are websites that provide users the opportunity, through access to its message boards, to communicate with others concerning stock trading, corporate behavior, and other finance-related issues. The websites undoubtedly serve a useful purpose. But the message boards, which allow its users to express themselves anonymously, by using “screen names” and/or “user names” traceable only through the hosts of the sites or their internet service providers (ISP), are an opportunity for fraud, trade libel, defamation, misinformation, and stock market manipulators. Indeed, these market manipulators have used the message boards in schemes to undermine shareholders’ trust in management or products to depress the market price of stocks and its revenues. They do this, at least in part, for their personal gain without regard to the reputations, careers, and business relationships they destroy.
13. Doe Defendants 1-20 are some of the unscrupulous posters who have systematically undertaken a course of conduct that includes dissemination of false, offensive, damaging, or disparaging posts, statements, material, or comments about TSOI, its CEO, Timothy G. Dixon, its directors, its trademark QuadraMune®, and other products and technology on several websites. On information and belief, Defendants, and each of them, have engaged in a conspiracy to destroy Plaintiffs’ business reputation and suppress TSOI’s stock price by defaming Plaintiffs and TSOI’s products - - including the trademark QuadraMune® - - on public internet message boards.
14. DOE Defendants 1-20 have made numerous postings on internet hosting sites accusing TSOI of misleading investors, unlawfully selling stock, engaging in an unlawful “pump and dump” scheme, engaging in illegal practices, and disparaging QuadraMune® and TSOI’s other products by expressly and implicitly suggesting the products are a scam and fraudulent. Additionally, Defendants have personally defamed and attacked the individual Plaintiffs by accusing them of illegal acts and publishing untrue statements about them, including statements regarding their alleged incompetence in business, trade, or profession.
15. As a direct result of Defendants’ actions, I and my company have been injured. TSOI saw a significant decline in the sales of its QuadraMune® product and, notwithstanding numerous positive press releases announcing new patent applications, patent issuance, and breakthroughs in the development of new medicines, TSOI’s stock price declined in value and over the last two years and has remained suppressed.
16. Exhibits 1 through 7 referenced in the Complaint that is attached to this Declaration contain examples of the defamatory statements DOES 1-20 have made against me, TSOI during the relevant time period. Each Exhibit contains posts for one of the specific DOE Defendants 1 through 7.
17. The postings that are referenced in the Complaint and in Exhibits 1-7 attached to this Declaration were published on the TSOI forum within the Stocktwits.com website. Plaintiffs possess copies of all relevant posts published by DOES 1-7 during the relevant time frame.”
