2015-11-05 11:27 ET - News Release
An anonymous director reports
NOBILIS SUES ANSON FUNDS AND ANSON ANALYST SUNNY PURI FOR $300 MILLION
Health Corp. has filed suit in the Ontario Superior Court of Justice
against Sunny Puri, Anson Canada, Anson LP, Anson Capital, Anson
Investment Fund and Anson Catalyst Fund, along with John Does 1 through
20. The claim alleges that these individuals perpetrated a scheme to
damage Nobilis' reputation and business relationships in order to profit
through short-selling of Nobilis stock. Nobilis is seeking monetary
damages in excess of $300,000,000 along with punitive damages. Nobilis
expects to add more Anson affiliates and other participants in the
scheme as defendants.
The complaint specifically alleges that the Anson family of hedge
funds and associated-individuals devised and participated in a "short
attack" scheme against the Plaintiff, Nobilis Health Corp., in which the
defendants broadcast false and defamatory information about Nobilis in
order to drive down the price of Nobilis' publicly traded stock (the
"Nobilis Common Stock") so that the defendants could profit from short
positions they had taken in Nobilis Common Stock and derivative
securities thereof. The key to the scheme was the written attack (the
"Article") on Nobilis' business which the defendants prepared and
anonymously posted under the pseudonym "The Emperor Has No Clothes" to
the website "Seeking Alpha" (www.seekingalpha.com) ("Seeking Alpha").
The Article made numerous statements of purported "fact" about Nobilis'
business that were false and defamatory, including allegations that the
Company's auditors resigned amid controversy (untrue), CFOs had been
shuffled to hide impropriety (untrue), insiders had sold all of their
Nobilis Common Stock (untrue), that the Company was hiding poor
performance behind acquisitions (untrue), that major insurers would not
pay for certain medical procedures billed by Nobilis (untrue), and
several other false, defamatory and misleading statements.
Nobilis Common Stock traded at $6.81 at the open of trading on
Toronto Stock Exchange on October 9, 2015 -- the day the Article was
broadcast. At close that day the price was $4.93. Over the next two
weeks Nobilis Common Stock continued trading downward to a low of $2.83,
a drop of approximately 60% from price at the open of trading on
October 9, 2015. That decline translates to a loss of over $300,000,000
million in market capitalization.
Nobilis believes it is entitled to damages for reputational harm,
disruption of its business and affairs, loss of corporate
opportunities, costs of investigating and correcting the false and
defamatory statements, costs of defending against investor litigation
initiated as a result of the false and defamatory information, and other
consequential damages resulting from the defendants' scheme and market
The case is Nobilis Health Corp. v. Sunny Puri, M5V Advisors, Inc
(c.o.b. as Anson Group Canada), Admiralty Advisors, LLC, Frigate
Ventures, LP, Anson Investments LP, Anson Capital, LC, Anson Investments
Master Fund, LP, AIMF, GP, Anson Catalyst Master Fund, LP, ACF GP, and
John Does 1 through 20, Court File No. CV-15-11162-0000, Ontario
Superior Court of Justice. Nobilis management is in discussions with
US-based counsel regarding the Company's legal recourse against parties
located in the United States.
We seek Safe Harbor.