Lies, Propaganda And Deception Of Internet Stock Message Boards
October 10, 2005. (FinancialWire) (By Ant & Sons) Eagle Broadband (AMEX: EAG), a leading provider of broadband and Internet Protocol services, has filed a lawsuit against Internet posters who have purportedly engaged in illegal trading activities and stock manipulation schemes. The company plans to aggressively seek damages and injunctive relief to ban posters on message boards like those at Yahoo!Finance (NASDAQ: YHOO) from distributing false, fraudulent and misleading information that the company believes has been designed to damage the company, its shareholders and stock. In real life, and particularly the stock market, perception is often reality. When an investor decides to invest in a corporation, there are numerous methods of doing diligence on that corporation to make sure a good investment choice is made. These methods can range anywhere from researching the company through its financial reports, analyst commentary, and opinions of the financial press. However, with small and micro cap securities, that readily accessible coverage is not available. To compensate for this, investors usually look to online financial communities, or message boards, to find out the scoop or buzz on that company. The perception of a company created by the chatter of these online message boards is intensely powerful. In the case of Eagle Broadband, the fraudulent and misleading information distributed by these defendants has been posted on widely visited financial Internet message boards, including the likes of Yahoo! Finance, Investors Hub, Raging Bull and others.