Eagle Broadband Files Lawsuit Against Internet Posters Believed to Be Engaged in Illegal Trading Activities & Stock Manipulation
October 05 2005 - 10:30AM
Business Wire
Company to Aggressively Seek Damages and Injunctive Relief to Ban
Posters from Distributing False, Fraudulent and Misleading
Information Designed to Damage the Company, its Shareholders and
Stock Eagle Broadband, Inc. (AMEX:EAG), a leading provider of
broadband, Internet protocol (IP) and communications technology and
services, announced today that the company has filed a lawsuit
containing claims for defamation and unfair business practices in
the Superior Court of California against 25 anonymous "John Doe"
defendants alleging that these defendants have distributed false,
fraudulent and misleading misinformation on Internet message boards
in an effort to damage Eagle's business and its shareholders, and
to drive down the value of its stock in order to reap profits for
themselves. The 25 "John Doe" defendants named in the lawsuit
include individuals using the following Internet message board
ID's: "upanddown100", "team_3339", "bubba2o", "benderanddundat",
"advanced_headlines", "richwill21", and "phil_phd2003", among
others. The company may add additional defendants to this lawsuit
as additional evidence warrants. The company has evidence that
these posters have engaged in unlawful activities and is seeking
monetary and punitive damages from these individuals and/or firms
who have engaged in deliberate misinformation campaigns designed to
drive down the price of the company's stock in an apparent attempt
to capture illegal gains from short sales. The fraudulent and
misleading information distributed by these defendants has been
posted on widely visited financial Internet message boards
including Yahoo! Finance, Raging Bull and others. The information
has included, but is not limited to, fraudulent statements about
the financial condition and business activities of the company,
erroneous information about the company's products, partners and
customers, and personal attacks against the company's management,
board of directors and employees. The lawsuit is designed to stop
these individuals and/or firms from continuing these illegal
activities as well as to seek the full measure of damages and other
remedies permitted by law. "While Eagle Broadband fully respects
individuals' right to free speech, we will not tolerate deliberate
misinformation campaigns that disseminate false and fraudulent
statements that damage the company, our shareholders and the value
of our stock," said David Micek, President and CEO of Eagle
Broadband. Micek continued, "The internal committee we previously
formed to investigate improper trading activities has uncovered
solid evidence of fraudulent and defamatory information being
posted on various Internet sites. While we support the use of the
Internet to discuss the company and its progress, we believe it is
now appropriate to aggressively pursue all available regulatory and
legal remedies against those engaging in these illegal schemes. Our
goal is to do everything we can to put a stop to these illegal
activities and seek maximum damages for the benefit of Eagle and
its shareholders." "As the company remains focused on growing the
business, our internal committee and legal team will continue to
closely monitor the online message boards, and we will remain
extremely vigilant in our efforts to uncover and take action
against any individuals or firms engaged in these illegal
activities," Micek added. About Eagle Broadband Eagle Broadband is
a leading provider of broadband, Internet Protocol (IP) and
communications technology and services that create new revenue
opportunities for broadband providers and enhance communications
for government, military and enterprise customers. Eagle leverages
years of proven experience delivering advanced, IP-based broadband
bundled services to provide service provider partners with a way to
deliver next generation entertainment, communications and security
services to their subscribers. The company's product offerings
include IPTVComplete(TM), the fastest, lowest cost way for
broadband providers to deliver the most competitive IP video
services; the MediaPro line of HDTV-ready IP set-top boxes that
enable broadband providers and hotel operators to maximize revenues
by delivering state-of-the-art, interactive entertainment services;
and the SatMAX(TM) satellite communications system that provides
government, military, homeland security and enterprise customers
with reliable non-line-of-sight voice and data communications from
any location on Earth. The company is headquartered in Houston,
Texas. For more information, please visit www.eaglebroadband.com or
call 281-538-6000. (EAGG) Forward-looking statements in this
release regarding Eagle Broadband, Inc. are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such
forward-looking statements involve risks and uncertainties,
including, without limitation, continued acceptance of the
company's products, increased levels of competition, new products
and technological changes, the company's dependence upon
third-party suppliers, intellectual property rights, and other
risks detailed from time to time in the company's periodic reports
filed with the Securities and Exchange Commission.
Eagle Broadband (AMEX:EAG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eagle Broadband (AMEX:EAG)
Historical Stock Chart
From Jul 2023 to Jul 2024