SOURCE: Don Danks of Imergent, Inc.

April 12, 2005 12:30 ET

Don Danks, Chairman and CEO of Imergent, Inc. Files $15 Million Lawsuit Against StockLemon.com and Its Principals for Libel and Defamation

Suit Also Seeks Punitive Damages Based on False and Misleading Published Reports

LOS ANGELES, CA -- (MARKET WIRE) -- April 12, 2005 -- Don Danks, the Chairman and CEO of Imergent, Inc. (AMEX: IIG) has filed suit in Los Angeles Superior Court against Stocklemon.com and its principals for $15 million. The suit also seeks punitive damages in an amount to be determined at the time of trial.

Among other things, the suit asserts a cause of action for defamation based on false, misleading and damaging allegations published over the Internet that has significantly damaged the reputation and standing of Mr. Danks as the CEO of Imergent, Inc., a publicly traded company. The suit also asserts causes of action for Interference with Prospective Economic Advantage, violations of California Corporate Code 25400c and Violations of 15USC 101 et seq., conspiracy and infliction of emotional distress.

Barry K. Rothman, attorney for Mr. Danks said, "Litigation has been filed against StockLemon.com and its principals, which litigation we intend to be the test case to disclose the fact that certain websites that profess to be consumer watchdog sites are really sites who manipulate the stock price of a given stock they have a vested financial interest in by intentionally publishing false and negative information regarding the stock, which causes StockLemon.com to make substantial profits when stock prices fall as a result of the false and negative information having been published. As well this litigation is intended to be a test case that will make it mandatory for principals of these self-professed consumer watchdog sites to disclose their identities, and the true identities of the fictitious names of the people who post. Most importantly this litigation is intended to be a test case that these websites have a financial motive in publishing the false and negative information they publish and they cannot hide behind Freedom of Speech and 1st Amendment Rights and we intend to have the court impose severe punitive damages against all defendants as a result of the outrageous defamation that has been published "for profit."

Said Mr. Danks, "The information published by Stocklemon.com is false, misleading and has been emotionally and financially devastating to me, my family, employees of Imergent as well as the majority of stockholders of Imergent. I intend to vigorously and aggressively prove that the statements made about me are false and I am prepared to take this case to trial if necessary to clear my name and reputation and to demonstrate that one cannot publish defamatory information for financial gain without consequences. I have conducted my entire professional career honestly and ethically and to be personally targeted like this by StockLemon.com will not be tolerated."

The entire text of the lawsuit can be found at www.lasuperiorcourt.org

Contact Information

  • Contact:
    Barry Rothman
    310-557-0062