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March 25, 2013 /PRNewswire/ -- Longwei Petroleum Investment Holding Ltd. (OTC Markets "LPIH") ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in
the People's Republic of China ("PRC"), announced that it has filed a complaint (the "Complaint") on
March 19, 2013 in the United States District Court Eastern District of
Pennsylvania (the "Federal Court") against Defendants
Geo Investing, LLC ("Geo") and
Jon R. Carnes ("Carnes") (collectively, the "Geo-Carnes Enterprise"), and Seeking Alpha Ltd. ("Seeking Alpha"), (collectively, "Defendants").
Longwei alleges in the Complaint that on
January 3, 2013, Defendants, acting in concert, authored and/or published an article on the Company (the "Geo Report"), which they knew contained numerous false and defamatory statements about Longwei's business operations to directly discredit the Company's business reputation and constituted libel per se.
Accordingly, as a direct result of the Defendants' commercial disparagement, unlawful conspiracy, fraudulent conduct, ongoing conspiracy, RICO violations through a pattern of racketeering activity and tortuous interference with business relations, among other claims described in the Complaint (the "Claims"), Longwei has suffered damages in an amount to be determined at trial including, but not limited to, the loss of approximately
$242 million in market capitalization, the ceasing of its shares being traded on the NYSE MKT, litigation costs resulting from a potential securities class action against it, and other damages stemming from loss of various business relationships.
This is an action by Longwei, a public corporation, for defamation, fraud, and RICO violations, among other things alleged in the Claims, against the Defendants for damages caused by the Defendants' conspiracy to defame Longwei's business as part of their fraudulent short-selling scheme to severely decrease Longwei's stock price, while simultaneously "shorting" Longwei's stock, to reap massive illicit gains at the expense of Longwei and its shareholders.