Full statement from John Courtade given to the WSJ on March 20.
“There’s nothing questionable about investors doing their own due diligence, writing a report, or choosing to speak about some aspect of their work with other investors. To suggest otherwise ignores the securities laws, not to mention the First Amendment”
Full Statement from Carson Block regarding RINO International given to the WSJ on March 18:
“When we produced our report on RINO, we had little capital, so we sold advance copies of our report. Having a crowded position is the enemy of short selling, so after RINO, we tried to limit knowledge of our reports only to people who participate in the research. We do speak to market participants and other experts during our research process and interact with banks and brokerage firms when we are putting on positions. It’s a balancing act for us because we want to do research as thoroughly as possible without tipping someone off to what we’re working on. We never make clear to anyone what we are working on. Some people think they can figure out what we’re up to, but we have done research on companies we’ve never published on. Trying to guess what we’re up to is a risky business.”