I got a reply from the law firm for my question regarding false allegations from Muddy Waters, Citron as below:
My question was :
I am concerned that your case is against CCME only. What if the fraud allegations by Citron and Muddy Waters are false as I heard in the news? Will you sue Citron and Muddy Waters as well. Please let me know. Thanks for your help.
Answer from the law firm
Dear xxx:
I thank you for the question. If the allegations are false, the lawsuit against the Company will be withdrawn, but I will not sue Muddy Waters or Citron or anyone else. I have noticed that there is a law firm which announced that it is investigating the possibility of suing Muddy Waters. In my opinion, considering a suit against Muddy Waters is silly, regardless of its actions. First, it is unclear that Muddy Waters broke any laws, or if it did, how one would prove it. Second, there is a very limited class of plaintiffs. If the report proves incorrect, the longs would recover their money and only the people that sold for a loss would have a lawsuit. Thus, the damages would be limited and hardly worth any attorney taking the case on a contingency basis. Additionally, the people that lost money might have to prove that they actually read the report to win a lawsuit, which means there could be problems certifying a class. Finally, unlike the Company, which is publicly traded and very likely to have insurance, there is no reason to believe Muddy Waters has any insurance, which means in the unlikely event one was to win a lawsuit against Muddy Waters, it is likely that they would never see a dime. I really have no idea why any law firm with the goal of being profitable would consider such a suit, but if you call the firm involved, feel free to write me back with its attorneys say. Sincerely, Howard G. Smith, Esquire Law Offices of Howard G. Smith 3070 Bristol Pike, Suite 112 Bensalem, PA 19020 Telephone: (215) 638-4847 Facsimile: (215) 638-4867
Thanks Howard.
