Silvercorp Metals Inc., whose shares plummeted after reports of accounting and resource statement fraud, has added more defendants to its lawsuit against those it sees as responsible for the allegedly defamatory reports.
The company, which is focused on silver production in China, initially filed the suit in September 2011 after Internet reports criticizing as untrue company statements and resource estimates were followed by sharp stock price drops -- including a 20 percent drop in one day.
Silvercorp is suing the defendants in New York state court for defamation, unjust enrichment, trade libel and tortious interference, and deceptive acts and practices.
The defendants spread reports about Silvercorp to drive down the price of Silvercorp's stock to profit from their short positions in the stock, the company said in a statement Monday.
Initial defendants were Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, among others. On Monday, the company said it has added as defendants EOS Holdings LLC., Jon Carnes, Zane Heilig, Andrew Wong and International Financial Research & Analysis Group.
Silvercorp seeks compensatory and punitive damages.