Firm sues over Net room 'defamation' chat

A commercial printing products maker sued three short-sellers over newsgroup postings concerning the company's business prospects.

Presstek Inc.'s defamation suit, filed Thursday, claims the defendants said the company would lose money in a quarter when it actually turned a profit, and also falsely alleged that Presstek was the focus of a grand jury investigation.

Presstek stock has been closely watched by investors and short-sellers because of its price volatility during the past year