Mineweb reported that Vancouver stock analyst Kun Huang, who recently completed a 2.5-year stint in a Chinese prison, has filed a lawsuit against Silvercorp Metals Inc. (TSX:SVM,NYSE:SVM).
As quoted in the market news:
[Huang] is an investigator for hedge fund Eros, who asserted that ore estimates at a Chinese mine owned by Silvercorp were not accurate. In September 2011, Alfredlittle.com, which was owned by the manager of Eros, Jay Carnes, issued a report claiming the company was overvalued, causing Silvercorp shares to plunge by $2.8 million in value.
As reported by Mineweb’s Kip Keen in 2011, Silvercorp sued Alfredlittle.com for defamation and told securities regulators that the report advocated illegal short-selling tactics. However, Silvercorp’s lawsuit was dismissed.
In a lawsuit Tuesday, Huang claims that Silvercorp was responsible for his detention in China as a reprisal for his Silvercorp research for Eros. Huang was trying to leave China on Dec. 28. 2011, when he was detained, searched and imprisoned, according to his lawsuit.