Nevada Manhattan Mining Sues Debenture Holders

Nevada Manhattan Mining has filed suit in U.S. District Court in Los Angeles against a dozen holders of convertible debentures and four “related parties” that the company alleges are trying to depress the market for its common stock.

In the suit, the Calabasas-based company alleges that the 16, which includes individuals and foreign corporations, purchased some of the firm’s convertible debentures as part of an “illegal scheme and conspiracy that also involved significant manipulative short-selling” of the firm’s common stock.

Nevada, a global natural resources company, contends that the alleged short-selling depressed its market value by nearly $150 million.

The company is seeking unspecified compensatory and punitive damages and an order that would bar the 16 from converting the debentures into common stock.

Kenneth Zitter, a New York attorney for two of the defendants, denied the allegations and said his clients have filed suit in New York seeking delivery of the disputed stock.