Juice Co. SkyPeople Slaps Short Seller With Libel Suit

Law360, New York (July 8, 2011, 3:35 PM EDT) -- SkyPeople Fruit Juice Inc. filed a suit Thursday in Wyoming claiming an investment manager spread phony fraud rumors in order to cash in on a short position in the Chinese fruit juice maker’s stock.

Absaroka Capital Management circulated a defamatory report claiming that SkyPeople overstated its value in public filings and is actually a small fraction of the size it purports to be, driving down the company’s stock and profiting on the decline, according to the complaint.

While the June 1 report on SkyPeople sounded the...
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