Eagle Broadband Announces that California Court has Ordered Lawsuit to Proceed Against Internet Posters; Eagle Broadband Believ
March 14 2006 - 4:30PM
Business Wire
Eagle Broadband, Inc. (AMEX:EAG), a leading provider of broadband,
Internet protocol (IP) and communications technology and services,
announced today that the California Superior Court of Santa Clara
County issued a ruling late last week allowing discovery to proceed
in Eagle Broadband's case against Internet posters that Eagle
believes are engaging in manipulative stock trading activities.
Eagle Broadband has alleged that these Internet posters have
intentionally posted false information on the Yahoo! Finance
message board in an effort to drive down the value of Eagle's stock
price. In response to the complaint, four of the anonymous Internet
posters filed motions to strike or dismiss the complaint as
constitutionally protected speech on a matter of public interest
under California's anti-SLAPP statute. On March 9, the Honorable
William J. Elfving of the California Superior Court of Santa Clara
County issued a ruling allowing discovery in the case to go forward
with respect to two of the posters, known as DOE 2 and DOE 3, and
ruling as a matter of law that Eagle had met its legal burden of
establishing a prima facie case against a third poster, known as
DOE 4, under the California's Anti-SLAPP law. Judge Elfving wrote
in the ruling, "The declaration of Deirdre A. Flaherty contains
admissible evidence that Eagle's stock value and business suffered
from DOE 4's fake press release and other false and misleading
messages that were posted on the Eagle MB from January 1, 2005
through October 31, 2005. Accordingly, DOE 4's special motion to
strike is denied." David Micek, Eagle's President and CEO, said,
"This is an important win for Eagle's loyal shareholders, but not
an unexpected one. While Eagle fully respects the constitutional
rights protected by California's anti-SLAPP statute, the Court's
ruling is an acknowledgment that these Internet posters have simply
gone too far." Eagle filed this lawsuit on October 5, 2005. Since
then, Eagle has learned the identity of several of the DOE
defendants and will amend the complaint to include their real
identities. Through the process of legal discovery, Eagle expects
to learn additional identities as well as to obtain the financial
and trading records for several of the DOES. About Eagle Broadband
Eagle Broadband is a leading provider of broadband, Internet
Protocol (IP) and communications technology and services,
including: IPTVComplete(TM) the fastest, lowest cost way for
broadband providers to deliver the most competitive IP video
services; the MediaPro line of HDTV-ready IP set-top boxes enabling
broadband providers and hotel operators to deliver
state-of-the-art, interactive entertainment services; and, the
SatMAXT communications system that provides government, military,
homeland security and enterprise customers with non-line-of-sight
voice and data satellite telephony from any location on Earth. The
company is headquartered in Houston, Texas. For more information,
please visit www.eaglebroadband.com or call 281-538-6000. EAGG
Forward-looking statements in this release regarding Eagle
Broadband, Inc. are made pursuant to the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995. Investors
are cautioned that such forward-looking statements involve risks
and uncertainties, including, without limitation, continued
acceptance of the company's products, increased levels of
competition, new products and technological changes, the company's
dependence upon third-party suppliers, intellectual property
rights, and other risks detailed from time to time in the company's
periodic reports filed with the Securities and Exchange Commission.
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