Organovo Holdings Inc (ONVO) Wins Suit Against Simeon Research

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Organovo Holdings Inc (ONVO) Wins Suit Against Simeon Research
Organovo Holdings Inc ONVO

Our readers are likely familiar with this court case – if not check out – anyway Organovo Holdings Inc (NYSEMKTS:ONVO) has just won a defamation lawsuit against Simeon Research, see the background here.

UPDATE 9/15/2014 9:05AM EST ONVO has released the following statement on its website this morning

Organovo sued Simeon Research for libel and won its case.  Simeon was ordered by the court to remove all of its libelous statements from distribution on the internet.  Simeon opposed Organovo’s case, but Simeon’s counsel resigned during the case and Simeon did not respond to the Complaint after its counsel’s resignation. The Delaware Court of Chancery ultimately found against Simeon, requiring that Simeon remove all libelous statements from its website, Twitter account, or any other public websites and prohibiting Simeon from making further defamatory statements about Organovo or publishing libelous statements about Organovo on the Internet.   

During the course of the case, Organovo received information suggesting that Simeon Research was not a long short equity analytical research fund.  Rather, there was a single individual who was the sole founder, owner, and employee of Simeon involved with Simeon in any capacity.  Organovo believes that this individual created a false corporate front rather than using a previously-existing Seeking Alpha profile in an attempt to deceive his audience and to hide and protect himself due to an intention to profit by trading in Organovo derivatives while distributing the information. He used an alias to communicate with Seeking Alpha, which declined to publish Simeon’s submission.   The individual had taken a large short position in the form of derivatives on Feb 19, 2014, first published Simeon’s purported research on Feb 20, 2014, and exited the majority of his short position on Feb 21, 2014 with tremendous gains.  In the two-week period prior to the release of Simeon’s second report in April 2014, he built up another short position in derivatives, which he exited within approximately one week of issuance of the second report.

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