NEW YORK, May 2, 2011 /PRNewswire/ -- Deer Consumer Products, Inc. (Nasdaq: DEER) (website: http://www.deerinc.com/ ), a leading provider of "DEER" branded consumer products to Chinese consumers and a leading vertically integrated manufacturer of small household and kitchen appliances for global customers, publicly announces today that the Company has received additional evidence of continuing illegal short selling in DEER stock.
The Company believes its common stock has been manipulated in collusion among "naked" short sellers, which may include U.S. and off-shore based hedge funds/individuals that distribute false and fabricated information concerning the Company via various websites and blogs, including through SeekingAlpha.com, a website owned by Seeking Alpha Ltd., an Israeli company.
In what appears to be a part of this attempted manipulation, a purported class action complaint was filed against the Company by The Rosen Law Firm. This complaint is expressly based upon the false and defamatory reports concerning the Company that were authored by a fictitious character - " Alfred Little" and published by Seeking Alpha Ltd. even though Seeking Alpha Ltd. had deleted certain false reports prior to the filing of the complaint. Litigation counsel for DEER has notified The Rosen Law Firm that the complaint contains numerous false and inaccurate allegations and the Company will seek sanctions against the plaintiff and The Rosen Law Firm if the complaint is not withdrawn in its entirety.
BACKGROUND FACTS:During the months of March and April 2011, the Company believes that an attempted market manipulation scheme by illegal short sellers acting in collusion caused DEER's share price to plunge from more than $11 per share on March 21 to as low as $6.12 on April 4 on heavy daily volume, causing a temporary loss of approximately $165 million in market capitalization for DEER's shareholders. To protect DEER's shareholders and as a matter of good corporate governance, DEER has repeatedly confirmed that its filings with the Securities and Exchange Commission, including its latest annual report, 10-K filing with audited financials are accurate and are in full compliance with SEC disclosure requirements. DEER has also affirmed its 2011 earnings guidance and a dividend policy. In addition, DEER paid initial quarterly cash dividend of $0.05 per share on April 14 to shareholders of record on March 31. DEER has hosted numerous visits by independent research analysts, institutional investors and global investment banks. The Company notes that DEER's share price has recovered approximately 66% since April 4 to a closing price of $10.14 on April 29. ADDITIONAL EVIDENCE OF ILLEGAL SHORT SELLING: