The Vulcan Energy Resources Ltd (ASX: VUL) share price continues its trot into the red today, currently down 1.04% at $10.89.
That marks a 27% decline for Vulcan's share price since activist short-seller J Capital released its scathing report on the company and its operations late last month.
There's a lot to cover here, so let's get straight into it.
Federal Court judge bars sharing of report
The report, titled "Vulcan – God of Empty Promises", calls into question Vulcan's Rhine Valley lithium operations, where it intends to use geothermal power to produce lithium hydroxide.
In a blistering review, the short seller alleges Vulcan has made overly optimistic projections, particularly on its cost, output, and production claims for the project.
J Capital also submits that the quality of any lithium hydroxide that Vulcan could produce at the site is of a low grade.
The research firm made several other bombastic allegations, including that Vulcan overstated the quality of its resource at the site.
Vulcan forcefully denies the 'disinformation' in the online report, posting an 11-page reply that challenges each of the salient points in the short-seller's thesis.
However, the Vulcan Energy share price has continued to struggle since the release of the report.
Now, in a twist of events, Vulcan has filed a lawsuit against J Capital for the report, claiming its contents are wrong and misleading.
Lawyers acting for the company launched Federal Court action under legislation that prevents false and misleading conduct by companies with any operations in Australia.
As such, a West Australian Federal Court has ordered the research firm to stop sharing its report until the matter can be advanced upon.
Hence, if you haven't tried already, the report is not available for viewing online right now.
Consequently J Capital and its name face Tim Murray will also be prevented from discussing the report or sharing any further information regarding its claims, under threat of substantial punishment.
This includes the liability of "imprisonment, sequestration of property or other punishment", according to the Court's orders published online yesterday.
No doubt there will be plenty more to come as the case unfolds before the courts in the coming days and weeks.
Vulcan Energy share price snapshot
Despite the recent turbulence, the Vulcan Energy share price has still soared more than 630% in the past 12 months. It has also rallied almost 300% this year to date.
Without a doubt, these returns have outpaced the benchmark S&P/ASX 200 index (ASX: XJO)'s return of around 20% in the last year.