Olam International Ltd. (OLAM), the world’s second-largest rice trader, sued investment firm Muddy Waters LLC and its founder Carson Block for defamation after they questioned the commodity supplier’s accounting methods.
Bloomberg reports that Block’s comments in London at a hedge fund conference on November 19th were malicious falsehoods, Olam said in a lawsuit filed in the Singapore High Court Wednesday. The company sought unspecified damages, costs, and an injunction against republication of the comments.
A war of words between Olam and Block began when the Muddy Waters research director accused the Singapore-based company of booking profits on transactions before it’s clear how they would work out over time. Olam Chief Executive Officer Sunny Verghese said on November 20th the statements were designed to panic shareholders of the company, which is also one of the top three coffee traders globally.
'Whatever that has happened, it had some serious impact on Olam, its share price, and investors', Leng Seng Choon, an analyst at DMG & Partners Securities in Singapore, said by phone.
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