Eagle Broadband Inc. said Wednesday that it has filed a lawsuit in the Superior Court of California against 25 anonymous “John Doe” defendants.
The provider of broadband, Internet-protocol and communications technology and services alleged that the 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.”
Eagle added that the fraudulent and misleading information distributed by these defendants has been posted on widely visited financial Internet message boards including Yahoo! Finance (finance.yahoo.com) and Raging Bull (www.ragingbull.lycos.com).
The company said it is seeking monetary and punitive damages.
“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," CEO David Micek said in a prepared statement.
“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,” he added. “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.”