SEGG Media Escalates Lawsuit Against White Diamond Research to $35 Million
The company cites continued share price decline since filing original claims against research firm and analyst Adam Gefvert.
SEGG Media has amended its litigation against White Diamond Research and analyst Adam Gefvert, raising the damages sought to $35 million from its initial complaint.
The company attributed the increase to what it describes as an ongoing decline in its share price since the original filing. The amended suit names both the research firm and Gefvert individually as defendants.
The escalation reflects a sharpening dispute between the media company and the independent research operation. White Diamond Research, which focuses on equity analysis, has not yet responded to the amended filing.
The case centers on allegations that relate to public statements and research disseminated by the defendants. SEGG Media's decision to increase its damage claim suggests the company believes the financial impact of the disputed conduct has widened since the initial lawsuit was brought.
Gefvert, who oversees research operations at White Diamond, declined to comment. White Diamond Research also did not respond to requests for statement.
The dispute underscores the tensions that can emerge between public companies and research analysts over market commentary and its effects on stock valuation.