Rumour spreader who caused share price collapse is silenced

A man accused of spreading malicious rumours on Twitter about Gulf Keystone Petroleum has been effectively silenced by an agreement that is just as legally binding as a court order.

The company had originally filed a lawsuit against the accused, Spencer Freeman, claiming damages for defamation and malicious falsehood. The company has agreed drop this case in exchange for a voluntary, but legally binding agreement by Freeman to not post malicious messages about the company.

Freeman’s “tweets” included a claim that the company was planning on issuing shares at a 22% discount on the previous day’s closing price. It is claimed that this caused Gulf Keystone’s share price to drop by 9%.

The company’s chief executive, Todd Kozel, referred to the statements as “damaging and misleading” and stated that, ‘We will not tolerate malicious attempts to damage the company’s reputation and share price … We have instructed the company’s lawyers to use all means necessary to protect our shareholders from this malicious and unfounded attack.”

Edited from various sources by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/17052012/rumour_spreader_caused_share_price_collapse_silenced/