AremisSoft Files Suit Against TheStreet.com, Others

AremisSoft(AREM - Cramer's Take - Stockpickr) filed a lawsuit against TheStreet.com(TSCM - Cramer's Take - Stockpickr) -- the publisher of this Web site -- and several hedge fund firms and individuals, alleging the defendants conspired to drive the company's stock price down to benefit short-sellers.

The suit, filed in the U.S. District Court for the Northern District of California, also named West Highland Capital, J. David Scially, Michael Wilkens, Wells Fargo Van Kasper, Martin Svanda, Apex Capital and Rocker Partners (Rocker Partners owned a 7% stake in TheStreet.com as of June 30).

In a news release, the software maker said the suit alleges the defendants acted in concert "to reduce the price of AremisSoft common stock in order to facilitate the profitable covering of shorts sales by the defendants and their affiliates." The company said the defendants created and disseminated false analyst reports, news articles and other statements containing false and negative information.

"We have reviewed the complaint and find the allegations to be baseless," said David Morrow, editor-in-chief of TheStreet.com. "We stand by Herb Greenberg and his reporting, and we will vigorously defend ourselves against this lawsuit. The idea that this was a massive conspiracy is absurd; one has to wonder why The New York Times, which has also written critically about AremisSoft and is cited in its complaint, was not named as a defendant as well." Greenberg wasn't named in the suit.

AremisSoft also said, "Additional parties may be added to the complaint by amendment if discovery in the case suggests others were involved."