Deer Consumer Products Sues Short Seller, Alfred Little

Co announced that Deer is fully aware of the latest desperate short seller attacks on Deer on Sept 6, 2011, including another publication of the same old lies by a fictitious figure “Alfred Little,” including totally fabricated information, false identities, and false allegations against the co. Deer has repeatedly filed relevant land acquisition related documents with the Securities and Exchange Commission (SEC), and Deer stands by the accuracy of its public filings. Deer is not aware of any negative development with its business and is conducting its normal course of business. Deer also notes the short seller “Alfred Little’s” attempt to link Deer to a heavily shorted and unrelated co, Harbin Electric (HRBN) whose management team has announced a going private transaction at $24 per share in cash, with a shareholder voting record date of Sept 13, 2011, and advised by Goldman Sachs, Morgan Stanley and Lazard Freres & Co., as well as represented by several global law firms.On March 28, 2011, Deer filed suit against short sellers and certain bloggers including “Alfred Little,” a now-admitted fictitious figure, alleging an orchestrated scheme to manipulate and depress Deer’s stock. Since then, “Alfred Little” has failed to answer the complaint, changed his identity from a real person to a web-site, and attempted to extort the company by threatening to publish more false defamatory reports until the company dropped its claims against these defendants. On August 29, 2011, the New York Supreme Court granted Deer’s motion to serve “Alfred Little” with the summons and complaint in the New York Litigation by e-mail and “Alfred Little” was served the following day. A default judgment may be granted against “Alfred Little” if this defendant does not show up in court. As of Q2/2011, Deer had shareholders’ equity of ~$157 mln and more than $22 mln in cash and cash equivalents without any long-term debts. Deer has sufficient cash on hand and has no plan to dilute its shareholders. Deer also affirms previous issued 2011 financial guidance and dividend policy. Deer has made numerous filings with the SEC on Forms 10-K, 10-Q and 8-K disclosing its land use rights in the Anhui Province of China. Despite recent claims of certain bloggers, who Deer believes to represent the interests of short sellers, Deer confirms that its disclosures in such filings were accurate, complete and reflect the commitment of management to provide the public with full and fair disclosure.