HHSE Threatens "Bashers"(Yeah, good luck with that)

Hannover House threatens its detractors with a lot of empty talk and misrepresentations. Bring on the shovels and deodorizer! 

November 20, 2016: Within it's most recent Quarterly Report, filed on November 16, long time penny stock sinkhole, Hannover House (HHSE), threatened litigation against an unidentified "stock 'bashing' organization". Such threats are common among schemes such as HHSE, who look to deflect blame for their shares' poor performance on factors other than insider dumping or lack of viability. However the statement made by Eric Parkinson on behalf of HHSE, sets a new bar for bombast and foolishness by the CEO of a public company.

A lot of these empty threats of litigation are spewed on Donald Baillargeon's MoneyTV, a web based program on which the pump clown interviews CEOs and other representatives of various penny stock endeavors looking to separate the public from its money. A countless number of companies who pay to be profiled by Baillargeon have been suspended by the SEC or are now dormant. Many times, a representative has appeared on the program to threaten litigation against those who express justifiably negative opinions of these companies. They are egged on by the host who loves to blast the so-called bashers on behalf of his client. Few such lawsuits have ever been filed, and even fewer have been successful. It is difficult for a scamming party to overcome a defense of truth, even if first amendment rights and the requirement to prove damages can be overcome by the complaining party. In the few instances that some satisfaction has been gained from the "bashers", it is usually because they get spooked by the legal action or its cost.

In the case of HHSE, the emptiness of the threat is evident in the admission that no such litigation has been filed. The admission is made in spite of the heading under which the threat is made:

Item 1. Legal Proceedings. As of September 30, 2016, the Company was involved in the following legal matters for which ongoing court activities / filings or adjudicated status were still pending: 

Well if the litigation has not been filed, then the company is not involved in a legal matter, so that's a misrepresentation that is clearly intended to intimidate. Specifically, we point to the ludicrous sentence, This civil action has still not been filed as of the date of this filing, due to a strategic determination regarding the ideal timing for the filing of this action... Strategic determination? Ideal timing? What the heck is that? If HHSE felt that they could actually prove damages, then they would just file the complaint. Otherwise, it should just shut the heck up. Even so, it is one thing to threaten litigation, but it is another thing to be a bombastic buffoon. That is exactly how HHSE CEO, Eric Parkinson portrays himself when he tries to sell the notion that the FBI could give a rat's behind about the "bashing" of his stock. Ditto for his assertion that the FBI investigator escalated this matter to the U.S. Attorney’s office, Western District of Arkansas... How ridiculous! If in fact the FBI has any interest in HHSE at all, it seems more plausible that it is investigating the company and/or Parkinson as a result of an unrelated complaint and that Parkinson screamed murder about "bashers". If the FBI is really investigating the ongoings at HHSE, it certainly isn't about bashers.

HHSE 5 Year Chart

It is highly unlikely that company consulted with their purported attorney, George B. Morton, prior to adding the litigation threat and claim of FBI/US Attorney involvement to the filing. It would be difficult to imagine that any reputable attorney would permit his client to make such ridiculous pronouncements even if the claims were even remotely true.

This is not the first time that HHSE has issued an empty threat to litigate, and yet not surprisingly, these lawsuits never materialize. Real companies that actually intend to file lawsuits don't threaten them in SEC filings. They file the litigation and then they perhaps announce it. In this case, HHSE has really just fired a meaningless warning shot and the so-called bashers should call their bluff. But then again, they probably won't have to lift a finger.