Thursday, October 12, 2006

MFLX Files Complaint Against Hedge Funds Regarding Short Sales/Manipulation

More on hedge funds and stock price manipulation...

Multi Fineline Electronix-MFLX files complaint against Roth, Stark and their funds
(theflyonthewall.com 10/12 06:33:11)

MFLX Wednesday announced that it has filed a complaint in the United States District Court for the Central District of California against hedge fund managers Michael A. Roth and Brian J. Stark as well as several hedge funds and management companies controlled by these individuals, including Stark Master Fund Ltd., Stark Asia Master Fund Ltd., Stark Onshore Master Holdings, LLC, Stark Offshore Managements, LLC, and Stark Asia Management, LLC. The complaint alleges that the hedge funds and their managers have failed to provide complete and materially accurate information regarding the nature of their holdings in M-Flex in their Schedules 13D, and amendments there to, filed with the U.S. Securities and Exchange Commission. MFLX alleges that the Stark hedge funds fail to disclose that they have neutralized the economic risk of their shares in MFLX through the use of derivative hedging instruments, such as short sales.