Interesting PR of the day, re: EAG...

Discussion in 'Trading' started by Chagi, Oct 5, 2005.

  1. Chagi


    I've been watching EAG for a bit, wondering at times if it's a turnaround story in the making, but the stock has been a real dog for the past year.

    That said, this news release caught my interest, can they actually be successful in sueing "anonymous" message board posters? Is there any precedence for this?

    Eagle Broadband Files Lawsuit Against Internet Posters Believed to Be Engaged in Illegal Trading Activities & Stock Manipulation Schemes

    Wednesday October 5, 11:30 am ET

    "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"

    HOUSTON--(BUSINESS WIRE)--Oct. 5, 2005-- Eagle Broadband, Inc. (AMEX:EAG - News), 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 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
    Frederick Reynolds, 281-538-6000
    CWR & Partners
    Ronnie Welch, 508-222-4802

    Source: Eagle Broadband