Silvercorp Concedes Defeat in Lawsuits Against Short Sellers

On Monday, March 11th, 2013 Silvercorp Metals Inc. (NYSE: SVM) quietly conceded defeat in its two defamation lawsuits as well as its appeal of A*L’s New York Supreme Court victory.  Copies of the discontinuance notices Silvercorp filed with the Court can be found here and here.  Like most bad news events, Silvercorp has not yet bothered to notify its investors of its court losses, despite pledging in a press release to “provide progress updates” on these matters.  Silvercorp acknowledged spending millions pursuing the claims.

According to recent reports, the new Chinese administration and media are becoming much more aggressive on fraud and corruption in China.  As such, I believe that Silvercorp management will soon be held accountable for funding Chinese police retaliation against my researchers, one of whom is still being held, effectively as a hostage, in a Chinese prison.  His story, and the truth about Silvercorp, has only just begun to be told.

Disclosure: Short SVM.

6 responses

  1. Jon, where is your post about the several failed class action lawsuits in which almost NO shareholders chose to participate? I DARE you to allow this comment to be posted.

  2. >Like most bad news events, Silvercorp has not yet bothered to notify its investors of its court losses,
    >despite pledging in a press release to “provide progress updates” on these matters. Silvercorp
    >acknowledged spending millions pursuing the claims.

    Actually, Silvercorp just released an update through Briefing.com. While it is good news to see the lawsuit dropped, you shouldn’t be so cocky. We are talking three business days’ lag.

    *****

    5:07PM Silvercorp Metals provides update regarding defamation case and class action: appeal filed by the Company has been withdrawn (SVM) 3.69 -0.17 : Co announced that the appeal filed by the Company following the granting of the motion to dismiss the defamation case filed by Silvercorp in the fall of 2011 has been withdrawn.

    “While Silvercorp disagrees with the decision of Justice Edmead- that “short and distort” publications are statements of opinion and not statements of purported fact (in other words the defendants simply had the freedom to express their opinions pursuant to their constitutional rights), Silvercorp believes it is in the best interest of the Company and its shareholders to end this potentially lengthy and expensive litigation, and continue to focus its efforts on developing the GC project while improving and upgrading its existing operations to deliver long-term shareholder value.

    “With respect to the current class action lawsuit filed in December 2013 against the Company by certain individual shareholders, as per the news release of January 24, 2013, it is the Company’s belief that there is no merit to the allegations set out in the class action lawsuits since they are based on previously made false accusations and as such represent nothing new. Should the class action be certified and proceed, the Company will defend itself accordingly. The Company has retained Latham & Watkins LLP in New York as its defence counsel.”

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