Companies targeted by short reports often look to respond by suing the report issuers. Those that follow through with litigation don’t have a track record of winning. The cases are hard to prove because they often hinge on defamation claims, and the First Amendment provides a strong line of defense for short-sellers, attorneys said.
“Such litigations are fact-specific but often boil down to courts balancing between protecting the right to offer opinion and permitting the ability to manipulate information for financial gain at a cost to companies and their investors,” Akin Gump Strauss Hauer & Feld LLP’s Joseph Sorkin said.
‘Enforcement 40’ for 2020
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