The federal securities laws prohibit the manipulation of securities. Specifically, manipulation is intentional conduct designed to deceive investors by controlling or artificially affecting the market for a security. Manipulation can involve a number of techniques to affect the supply of, or demand for, a stock. They include: spreading false or misleading information about a company; improperly limiting the number of publicly-available shares; or rigging quotes, prices or trades to create a false or deceptive picture of the demand for a security.
While the First Amendment protects freedom of speech, a charge of slander may be brought against someone who knowingly makes a false statement. Pleaes note that this is a civil matter, not a matter under the federal securities laws.
If you want to provide us specific details of persons being paid to bash a company, we would appreciate your letting us know. You can do this by filing a complaint at http://www.sec.gov/complaint.shtml.
Sincerely,
ROBERT T GREENE U.S. Securities and Exchange Commission (202)942-7221