Replies to post #309612 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[idiotsavanti]

uh, you just posted at Patchman. But you don't?

[famous13]

good idea to laugh now. i doubt you'll be laughing soon.

[scion]

Spongetech sues NYP Holdings (NY Post), Kaja Whitehouse, Timothy Sykes, Teri Buhl, David Patch and John and Jane Does.

http://viewer.zoho.com/docs/wCaxs

OCR extract - part 1

SPONGETECH DELIVERY SYSTEMS, INC.,
STEVEN Y. MOSKOWITZ and MICHAEL METTER,
Plaintiffs,

against

NYP HOLDINGS, INC., KAJA WHITEHOUSE, TIMOTHY SYKES, TERI BUHL, DAVID E. PATCH, JR. and JOHN AND/OR JANE DOES 1 through 10,
Defendants.

Plaintiffs SpongeTech Delivery Systems, Inc. ("SpongeTech"), Steven Y. Moskowitz ("Moskowitz") and Michael Metter ("Metter"), as and for their Complaint against NYP Holdings, Inc. (the "Post"), Kaja Whitehouse ("Kaja"), Timothy Sykes ("Sykes"), Teri Buhl ("Buhl"), David E. Patch, Jr. ("Patch") and others yet unknown who acted in combination or concert with the Post, Kaja and Sykes to facilitate and/or further the libel and defamation of Plaintiffs ("Jane and/or John Does 1-10," together with the Post, Kaja and Sykes, "Defendants"), allege and state, upon knowledge with respect to themselves and their own acts, and upon information and belief as to all other matters, as follows:

INTRODUCTION

1. This case arises out of a "short and distort" stock market manipulation scheme concocted by Kaja and Sykes that has targeted and severely harmed SpongeTech (and, conversely, benefitted through ill-gotten profits short-sellers of SpongeTech stock) through, inter alia, the publication of negative, false and/or defamatory statements in various New York Post articles concerning plaintiff, its executives, officers and directors. "Short Selling" stock, although it has not been restricted by the Securities and Exchange Commission since July 2007, has a dark side in that a small number of unethical traders use the practice of "short and distort" to manipulate the stock process in a bear market by taking short positions and then using smear campaigns to drive down the target stocks. This is a mirror version of the "pump and dump" where unethical individuals buy stock (take a long position) and issue false and misleading statements that cause the target stock's price to increase.

2. Beginning in September 2009, Kaja, with the assistance and/or at the behest of Sykes – a renown penny stock trader who maintains a website concerning his personal trading history and activities and advertises for sale various products that purportedly teach investors how to make money by short-selling penny stocks (and who has for many months published defamatory and derogatory articles about SpongeTech and its executives) -- and through her employer the New York Post, authored articles that publically impugned, maligned and defamed SpongeTech and its executives. The clear purpose of the negative articles about SpongeTech and its executives was to "smear" their public persona and reputation and, upon information and belief, drive the stock price of the Company down for the benefit of Sykes and other "short sellers" who are or have been directly or indirectly connected to or associated with Kaja and Sykes. Such conduct is a violation of the Martin Act and the Federal Securities Laws.

3. The outrageous, reckless and malicious conduct of Kaja (through her use of her media employer the New York Post) is manifest by her unabashed use of Sykes – a renown short seller and habitual SpongeTech basher -- as an "expert" or source of information n her articles. Previously, Sykes had falsely stated that SpongeTech "is not a real company," its "numbers are BS," and its stock price was "manipulated" and "manufactured." He further falsely asserted that SpongeTech's management -- including Moskowitz and Metter -¬personally and illegally looted the company. Although Sykes' previous publications had some effect on the SpongeTech stock, apparently this did not satisfy him and his short selling cohorts.

4. The outrageous, reckless and malicious conduct of Kaja is further manifest by her affiliation and direct line of communication with Patch — an individual who had bombarded the Securities and Exchange Commission with daily emails containing numerous unverified "facts", "findings" and "opinions" regarding SpongeTech to convince the SEC to investigate the Company. He even "begged" the SEC to take action against SpongeTech. Clearly Patch was fully aware of the fact that an SEC enforcement action against SpongeTech would result in irreparable harm to the Company and its shareholders (and, conversely, a home run for the short sellers).

5. Thus, Sykes and Patch conspired with Kaja, a reporter for the New York Post (a periodical whose reach far exceeded that of Sykes) to embark on a relentless "short and distort" "smear" campaign through the publication of the negative, false and defamatory articles; and beginning with an article published by the Post on September 17, 2009, and continuing through the date of this Complaint, Kaja published many articles that have impugned, maligned and publically crucified SpongeTech and its executives.

6. The Sykes/Kaja/Patch strategy has worked. Not only has SpongeTech been harmed in its business relationships and dealings, upon information and belief, its stock is and continues to be a favorite of short sellers worldwide.
[...]

[TheBlueHotDog]

Slander, defamation of character. Can't call 911 for no reason.

[pantherj]

I hope you counter-sue him for everything he has ... which, unfotunately, may not be much once everybody else is done with him.

[overachiever]

Discovery is a useful tool, Patch. No more secrets now. You will be able to see everything these crazies have done. When it is all over, it will be DOJ time for the Mutt Twins. You can count on it like clockwork.

[ThePennyGuru]

Get yourself a good attorney.

[Risicare]

I would not be suprised if you do not even get a chance to prove anything. I think the NY posts lawyers will squish the hack(s) who wrote it like ants.