CompuSonics Video Corporation – CPVD.PK annouced the following news release on Monday October 19, 2009 causing its stock price to jump from a LOW of $0.002 to a HIGH of $0.054 for a 2700% one day gain.
CompuSonics Video Corporation Announces Major Development with Patent Portfolio
By: PR Newswire | 19 Oct 2009 | 10:36 AM ET
FARMINGTON HILLS, Mich., Oct 19, 2009 /PRNewswire via COMTEX/ — FARMINGTON HILLS, Mich., Oct. 19 /PRNewswire-FirstCall/ — CompuSonics Video Corporation (OTC: CPVD), which engages in the ownership and licensing of various patents in the fields of digitalization and compression of audio and video files, announced today that the company has reached an out-of-court settlement regarding the company’s patent portfolio. For several years, we believed our patents have been used by 50 companies or more widespread. The companies are among the world’s largest electronics firms in the semiconductor, communications equipment, computer hardware, electronic instruments, computer peripherals, scientific and technical instruments, video storage and computer networks. The use of our patents is essential to the operation of thousands of products. From the time the patents were issued to date, the company estimates that over $100 billion worth of digitalization and compression of audio and video files, have made use of CompuSonics technology worldwide. CompuSonics Video Corporation is considering many options to bring back shareholder value, a few of them that are being discussed are a cash dividend per share with no restrictions and a stock buy-back program in the open market. Below is a list of the company’s patent portfolio. Some of the patents listed have expired, but during the time they were active companies have violated CPVD’s rights. Further details will be released soon.
Then came this release below, causing its share price to close at $0.0057 (-74.67%) on Tuesday October 20, 2009.
/K I L L — CompuSonics Video Corporation/
By: PR Newswire | 20 Oct 2009 | 12:59 PM ET
Journalists and other readers should disregard the news release, CompuSonics Video Corporation Announces Major Development with Patent Portfolio (OTC: CPVD – News), issued Oct. 19, 2009 over PR Newswire, as CompuSonics Video Corporation neither issued nor authorized any news release. The information contained in this Oct. 19, 2009 news release regarding a settlement is erroneous.
Talk about a wild pink sheet company. Is this legal? Did someone release insider information? What will happen to investors who bought the stock for $0.05 a share? Is this some kind of pump and dump scam? Who is behind all this? Is the SEC going to do anything about it? Only time will tell.