San Diego, Sept. 16, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Silvercorp Metals Inc. (USA) (NYSE: SVM) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Silvercorp Metals (NYSE:SVM) concerning whether the company and certain of its officers and directors or others have violated federal securities laws. Specifically the investigation concerns certain statements regarding Silvercorp Metals business, its prospects and its operations were materially false and misleading at the time they were made.

Silvercorp Metals 12months Total Revenue rose from $108.36million reported on March 31, 2008, respectively $83.52million reported on March 31, 2009 to $167.33million reported on March 31, 2011. Its Net Income rose from a Net Loss of $15.32million reported on March 3, 2009 to a Net Income of $61.36million reported on March 31, 2011.

NYSE:SVM stocks rose from as low as $4.79 on October 2, 2009 to almost $16 on April 8, 2011.

Shares of Silvercorp Metals Inc. (USA) fell from its on August 31 high of $9.25 per share to as low as $7.22 on September 2nd after Silvercorp Metals Inc. said that day that it was forwarded a copy of an anonymous letter dated August 29, 2011 addressed to the Ontario Securities Commission, its Auditors, and various media outlets alleging a 'Potential $1.3 Billion Accounting Fraud at Silvercorp'.

SVM stocks eventually regained some value and traded on Sept. 8, 2011 as high as $9.14 per share.

Then on September 12, 2011, Silvercorp Metals Inc. said that it welcomes the British Columbia Securities Commission (BCSC) taking quick and decisive actions to investigate the allegations against the Company in an anonymous letter dated August 29, 2011.

On September 13, 2011 analyst firm Alfred Little issued a report claiming that Silvercorp Metals had concealed related party transactions and inflated the size of its revenue, earnings, assets, and operations in the documents it filed with the U.S. Securities and Exchange Commission (SEC). The report cited a number of sources, including Chinese regulatory filings, consulting geologists, and the results of its own on-the-ground due diligence.
On September 14, 2011, Silvercorp Metals Inc. announced that a second set of anonymous allegations against the Company has been made, which was published on the internet . Silvercorp Metals Inc. said it refutes the substance of all allegations in the 2nd Anonymous Report, and believes it has been published in furtherance of concerted efforts by a group of short sellers to drive down the Company's share price through false, selective or ignorant statements and rumors. Silvercorp Metals said that investigations are ongoing by the RCMP, the BC Securities Commission, the SEC and the FBI to determine the identity of the anonymous authors.

Nevertheless, NYSE: SVM stocks fell to as low as $6.01 per share on Sept. 14, 2011 and closed on Friday, Sept. 16, 2011 at slightly above $7 per share.

On Sept. 19, 2011, September 19, 2011, Silvercorp Metals Inc. said that another false and misleading internet posting was published on that day by the fictitious and anonymous Alfred Little, posted an open letter today to its shareholders that addresses recent allegations made about the Company.
Silvercorp Metals' Chairman said that 'All of the allegations made against Silvercorp have been anonymous. All of the allegations are baseless and designed to be manipulative'.

Then on September 22, 2011, Silvercorp Metals Inc.filed a lawsuit in New York County Supreme Court charging defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several John Doe defendants with spreading false, defamatory and fraudulent information about Silvercorp on the Internet and in letters to the media and regulators. Silvercorp Metals said it claims that the defendants did so to drive down the price of Silvercorps stock in order to make their short positions in the stock more profitable. On October 24, 2011, Silvercorp Metals Inc. announced that it has received the report of KPMG Forensic Inc. (KPMG), commissioned by its Special Committee (the KPMG Report) to review the allegations issued by two anonymous sources in September respecting the Companys financial position.

Following the announcement NYSE: SVM shares climed to $9.89 per share on October 28, 2011.

On December 20, 2011 Silvercorp Metals Inc. said in a statement that it has been advised that Chinese law enforcement agents have opened a criminal case to investigate and find the creators of false and fraudulent reports by anonymous parties such as IFRA, Alfred Little and others, attacking Silvercorp and its Chinese subsidiaries..

On September 2011, the Company also filed a lawsuit in New York County Supreme Court charging defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several John Doe defendants with spreading false, defamatory and fraudulent information about Silvercorp on the Internet and in letters to the media and regulators. It has also filed two separate actions in British Columbia, Canada.


On January 9, 2012, Silvercorp Metals Inc. filed an amended lawsuit in the Supreme Court of the State of New York,County of New York, adding EOS Holdings LLC., Jon Carnes, Zane Heilig, Andrew Wong and International Financial Research & Analysis Group (IFRA), as defendants.