Sina Technology News, July 22nd morning Beijing time - Muddy Waters this week filed a lawsuit in an American court accusing a false media report of defaming its reputation. They also stated that someone attempted to impersonate one of their employees to extort $2 million from a company.
Due to accusations against multiple Chinese companies listed in the U.S. for irregular financial practices and causing their stock prices to fall, Muddy Waters and its research director Carson Block have recently become the focus of media attention. The company also profits by shorting the corresponding stocks.
The case was submitted to the Los Angeles Superior Court on July 20th with Muddy Waters and Block as plaintiffs. They accused the defendant of attempting to extort an unnamed company and deceiving them into believing that paying $2 million would result in the withdrawal of an unfavorable research report.
Muddy Waters also stated that a report published on June 21st on the free news wire service BriefingWire.com was defamatory in nature.
The report claimed that the U.S. Securities and Exchange Commission (SEC) had charged Muddy Waters and Block with fraud and alleged that Block was involved in market manipulation. However, an SEC spokesperson stated in June that the report was inaccurate but did not comment on whether the agency would conduct further investigations or if other departments had been notified.
The case has yet to identify the defendant. Muddy Waters stated that once the identity is confirmed, they will amend the complaint. BriefingWire.com has not commented on this matter so far. (Ding Hong)
Related reports:
- Muddy Waters Chief: The hunt for Chinese concept stocks will continue
- Counter-hunt for Chinese concept stocks: Muddy Waters may face investigation and litigation
- Muddy Waters shorting: Private investigation firms disrupt traditional financial ecosystems
- Muddy Waters accused of muddying the waters: Empty offices in Hong Kong and Shanghai
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