Medical Properties Defamation Case Against Short Seller Advances

Medical Properties Trust Inc. won a preliminary ruling in its defamation lawsuit over an alleged “short and distort” scheme by Viceroy Research.

Judge R. David Proctor let the case move forward Thursday with allegations that Viceroy and its principals harmed the REIT’s business and stock, which the short seller had bet against, through a smear campaign involving social media posts and more than a dozen reports.

Proctor, writing for the US District Court for the Northern District of Alabama, rejected Viceroy’s argument that its claims of fraud—targeting the REIT’s accounting and compensation practices—were merely opinions rather than statements of fact. ...