|
Augen wins order for identity of Stockhouse posters
2011-08-03 13:18 ET - Street Wire
by Mike Caswell
Augen Gold Corp. and its chief executive officer, David Mason, have won a court order directing Stockhouse Publishing Ltd. to help identify three forum posters that Augen and Mr. Mason are suing for defamation. The order, entered in the Supreme Court of British Columbia on Tuesday, July 26, directs Stockhouse to provide any information that could identify "WhattheF," "beachman" and "Clchan," including their IP and e-mail addresses.
The company claims that the posters authored at least 38 defamatory messages between January and May, 2011. The messages called Mr. Mason a "habitual looser [sic]" and a "liar," among other names, and accused him of collecting excessive management fees. The statements were entirely false and were intended to damage the reputations of Augen and Mr. Mason, according to the suit.
As part of the case, the company filed an application for a court order that would direct Stockhouse to provide identifying information for the three posters. It said that Stockhouse refused to provide any information without such an order. The judge granted the unopposed application at a hearing on Tuesday, July 26.
The lawsuit comes at a busy time for Augen, as it is attempting to fend off a hostile takeover bid from Trelawney Mining and Exploration Inc. The bid enjoys support from 42 per cent of Augen's shareholders, but the company's board has recommended that shareholders reject it. Augen calls the bid undervalued and opportunistic.
The company also was busy last summer fending off an attempt from dissidents to replace Mr. Mason and his board. The dissidents complained that the company lacked solid leadership, citing a high turnover of officers and directors. Ultimately, the dissidents were unable to secure sufficient support for their nominees, and Mr. Mason prevailed at the company's Sept. 30, 2010, AGM.
Augen sues Stockhouse posters
Augen's lawsuit, filed in the Supreme Court of British Columbia on July 21, 2011, complains about several posts in Stockhouse that appeared in the months after the AGM. The company quotes 38 of the messages in its 11-page statement of claim.
The first set listed in the suit, posted by "WhattheF," mostly appeared in March, 2011. One, dated March 8, stated, "What you need to appreciate is how much GLD pays in management fees and the over dilution we have suffered because of [Mason's] decision making." Another, three days later, read: "... when I look at his history of management decision making, it is very clear. He does not know what the hell he is doing." One later that day read: "Until Mason is removed or goes away, we are all stuck with a grossly under-performing stock. Perhaps that is why we see so much selling."
The second set that the suit complains of appeared under the alias "beachman." One message, dated Jan. 27, 2011, read: "Companies like GLD, which appears to be strictly promotional, will use SGH surveys as a promotional tool and to justify exploration and even drilling in areas that really should be considered moose pasture." Another, from April 26, stated, "So far evidence suggests they are more interested in finding angles to promote rather than launching a properly thought-out diamond drilling strategy ... ."
The final set listed in the suit was by "Clchan." One message, dated Jan. 17, 2011, read, "The sooner we can get real management in place the better we shareholders will be." Another, from Oct. 5, 2010, stated: "This company is simply operating to generate management fees ... This is the down side to a junior mining player like GLD. It becomes a management cash grab at our expense."
Another, dated Jan. 13, 2011, read: "Mason took Augen Capital from .35 cents in 2008 to .03-.06 average over the last 2 years ... he likes to suggest it was all because the market took a dump. I suggest it was because he does not know what he is doing, from a shareholder interest perspective that is. He seems to be doing just fine with his fees on the money raising!!"
According to the suit, the messages meant that the company's management was not qualified and that Mr. Mason is dishonest and untrustworthy. They also meant that Mr. Mason was motivated by self-interest. Augen says that the statements were all false, and were made in a calculated effort to lower the reputations of Mr. Mason and the company.
The suit seeks damages for libel as well as punitive and special damages. It also seeks an injunction preventing future posts by the three defendants. Vancouver lawyer Owen James of Fraser Milner Casgrain LLP filed the suit on the company's behalf.
|
