Nobilis Health Files $300 Mln Lawsuit Against Alleged Short Sellers in Ontario Superior Court
11/05/2015 11:48 | Midnight Trader
11:48 AM EST, 11/05/2015 (MT Newswires) -- Nobilis Health Corp. (NHC.TO) has filed suit in the Ontario Superior Court of Justice against Sunny Puri, Anson Canada, Anson LP, Anson Capital, Anson Investment Fund, and Anson Catalyst Fund, along with John Does 1 through 20. The claim alleges that these individuals perpetrated a scheme to damage Nobilis' reputation and business relationships in order to profit through short-selling of Nobilis stock. Nobilis is seeking monetary damages in excess of $300 million along with punitive damages. Nobilis expects to add more Anson affiliates and other participants in the scheme as defendants.
The complaint specifically alleges that the Anson family of hedge funds and associated-individuals devised and participated in a "short attack" scheme against the Plaintiff, Nobilis Health Corp., in which the defendants broadcast false and defamatory information about Nobilis in order to drive down the price of Nobilis shares.
Nobilis Common Stock traded at $6.81 at the open of trading on the TSX on October 9, 2015 -- the day the Article was broadcast. At close that day the price was $4.93. Over the next two weeks Nobilis Common Stock continued trading downward to a low of $2.83, a drop of approximately 60% from price at the open of trading on October 9, 2015. That decline translates to a loss of over $300 million million in market capitalization.
Nobilis believes it is entitled to damages for reputational harm, disruption of its business and affairs, loss of corporate opportunities, costs of investigating and correcting the false and defamatory statements, costs of defending against investor litigation initiated as a result of the false and defamatory information, and other consequential damages resulting from the defendants' scheme and market manipulation.
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