Biovail Suit To Challenge Dirty Tricks

In an unusual move, the Canadian company Biovail is suing a shortseller for more than $250 million, claiming he used false and malicious rumors to depress the firm's share price, according to local reports.

"As this litigation goes through the judicial system, the kinds of tactics that are being used by shortsellers, specifically in the US markets, will stun the investment community," commented Biovail's chairman Eugene Melnyk in an interview with Canada's Financial Post.

The firm's share price has fallen over 35% since May 22 to C$34.50 ($25.12) on the Toronto Stock Exchange. The shares are valued at around $25 on the New York, Stock Exchange.