Medifast Inc. (MED) is a publicly traded nutrition and network marketing company with a market cap of over $300 million.
Barry Minkow, a convicted felon turned short-selling sleuth, has been publishing information on the Internet alleging that the company is a pyramid scheme that relies on endless chain-recruiting to pump up its revenue. Naturally, Medifast and its chairman, Bradley MacDonald, are suing Minkow and several associates for defamation.
Also named in the lawsuit was an anonymous message board poster who writes under the alias “Medisdead.”
Among his infractions? According to the lawsuit (which can be found here, page 15): “. . . one anonymous message board poster, Medisdead has defamed MacDonald by referring to him as “Pimp Daddy Brad.”
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