Graphite Corp. (OTCMKTS:GRPH) Crashes After Being Added As A Lawsuit Defendant

The last trading session was a tumultuous one for Graphite Corp. (OTCMKTS:GRPH). Despite all the best efforts of the promoters their promises and overly-enthusiastic claims for the future of the company were for naught as the ticker bombed almost 29% down to close at $0.27.

Exactly as we warned you GRPH started sliding down from the get go and even the last desperate touts still claiming that the stock would explode did nothing to mitigate the drop. This time at least the pumpers have something else to blame other than themselves for the result.

A news came out that George Sharp, has named Graphite Corporation and Advanced Marketing Services LLC as additional defendants in an ongoing civil action for anti-spam violations. According to Mr. Sharp these defendants and others have allegedly disseminated spam emails in order to artificially create a marketplace for the stocks of those companies at artificially high prices.

You might remember Mr. Sharp back from when under similar circumstances he added as defendants to his trial Eco-Trade Corporation (OTCMKTS:BOPT) and Internacional Publizierende Gruppe Limitada. BOPT suffered a much harsher fate when the BCSC and FINRA issued halt trade orders on its shares on April 16th and 17th, respectively. If you want to learn what led to this outcome you can go and read our article about it.

Today we haven’t received any new alert emails which means the participating newsletters must have gone on to find new picks. But looking at their past history is quite enough. Back in mid April The Stock Brainiac was involved with another company – Massive Dynamics, Inc. (OTCMKTS:MSSD). Looking at the performance of the ticker you wouldn’t expect the compensation they received to be in the amount of $100 000.

We cannot stress enough on how volatile penny stocks can be. The best thing you can do to prevent any unpleasant situations is to do your own research and to never take anything at face value.