Deer Consumer Products, Inc. Warns Against Illegal Short Seller "Alfred Little" and a New Attempt to "Short and Distort"
NEW YORK, Dec. 20, 2011 /PRNewswire/ -- Deer Consumer Products, Inc. (Nasdaq: DEER) (website: http://www.deerinc.com/), a leading provider of "DEER" branded household consumer products and a vertically integrated manufacturer of small household and kitchen appliances for global customers, announced today that late yesterday it was the victim of a threat by "Alfred Little" a group disguised through fabricated identities and fake addresses and phone numbers, that have engaged in a series of "short and distort" schemes against more than a dozen U.S.-listed companies.
As reported in Deer's most recent 10-Q, "on March 28, 2011, Deer filed suit in the Supreme Court of the State of New York, captioned Deer Consumer Products, Inc. v. Alfred Little, et al., Index No. 650823/2011, against "Alfred Little," the website SeekingAlpha.com and others. Our claims in this action allege the publishing of false and defamatory statements by the defendants as part of an orchestrated scheme to manipulate and depress the market for our common stock. We are claiming compensatory and punitive damages totaling at least $11 million, not including claims for attorneys' fees, and other equitable remedies, including disgorgement of any illicit trading profits received by the defendants in connection with the alleged market manipulation scheme. On August 29, 2011, we obtained a Court order allowing us to effect service of the summons and complaint upon defendant Alfred Little via email and related notice. We effected service on Alfred Little pursuant to that order."
The December 19 threat, circulated by electronic transmission on one of the Alfred Little websites, demanded that Deer either withdraw its lawsuit against Little now pending in the Supreme Court of the State of New York, or suffer the consequences of a reign of terror that would begin today December 20 via additional attacks upon Deer by Little via electronic publications on the internet. The threat caused a sharp drop in Deer's share price on December 19, 2011.
In a recent blog post, "Alfred Little" threatened to continue publishing what Deer believes are false statements about the company based on fabricated data. The "Alfred Little" blog post further stated that "[i]f DEER wishes to prevent further investigative research from appearing on A*L [the "Alfred Little" website] the company needs to halt its legal proceedings and leave our contributors and us alone." Deer believes that this recent blog post by "Alfred Little" is an attempt to force the company, as well as other plaintiffs, into withdrawing pending lawsuits against "Alfred Little," and its conspirators.
Deer views the new actions of "Alfred Little" and others as an attempt to subvert the normal course of the judicial process. They will not succeed in coercing Deer to withdraw its lawsuit and bring the culpable parties to justice for their relentless unsubstantiated attacks. Deer remains in full compliance with U.S. securities laws.
About Deer Consumer Products, Inc.
Deer Consumer Products, Inc. is a NASDAQ Global Select Market listed U.S. company with its primary operations in China. Deer has a 17-year operating business as well as a strong balance sheet. Operated by Deer's founders and supported by more than 100 patents, trademarks, copyrights, Deer is a leading provider of "DEER" branded consumer products to Chinese consumers and a leading vertically integrated manufacturer of small home and kitchen appliances for global customers. In 2011, Deer has paid quarterly cash dividends of $0.05 per share. As of the end of third quarter 2011, Deer had approximately $5.15 per share in net assets without any long-term debts.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.
Corporate Contact:
Helen Wang, President
Deer Consumer Products, Inc.
Tel: 011-86-755-86028300
Email: [email protected]
SOURCE Deer Consumer Products, Inc.
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