Stephen Crane, the principal of Caribbean jewellry chain Colombian Emeralds, has launched a libel suit seeking "substantial sums'' against H.S & J.E.

Crisson Ltd., company head Peter Crisson, and general manager Larry Booker.

Mr. Crane alleges that Mr. Crisson and Mr. Booker are responsible for messages posted on the Internet at a Yahoo! notice board discussion site for investors interested in competitor Little Switzerland.

The notices, under the pseudonym Cranestalker, were posted throughout last year until January this year, during the time when Mr. Crane made a takeover bid for Little Switzerland through his holding company Destination Retail Holdings.

Cranestalker makes certain allegations about Mr. Crane, his reputation and character and the operations of Colombian Emeralds. The messages can still be viewed on the Internet beginning around June 1998. The last one was posted in early January.

"I was damaged very extensively by the messages,'' Mr. Crane said in an interview. "There were dozens of messages. They did serious damage to the reputation of the business and to our relationships with our customers and suppliers. I will be seeking substantial sums.'' Mr. Crane subsequently got Yahoo! to track down the source of the notices. He alleges that the notices were traced to Bermuda. Mr. Crane subsequently obtained an injunction on January 25.

Through the injunction Mr. Crane's appointed representatives went to Mr.

Crisson and Mr. Booker's homes and the business for evidence. Apparently a computer and other evidence were seized.

Colombian Emeralds is the exclusive supplier of Bermuda's Astwood Dickinson, a main competitor to Crisson's. Mr. Crisson was away from the Island last week.

Mr. Booker said he had no comment to make on the matter.

Mr. Crane and Destination Retail are involved in a class action suit filed this year in Delaware alleging that he and Little Switzerland's executives didn't inform shareholders that the offer for the company would expire on April 30 days before shareholders were scheduled to vote on the merger on May 8.

Subsequently Little Switzerland's stock price dropped 28 percent. Last month (April) Little Switzerland posed a net loss for nine months of $7.5 million and a 25 percent fall in sales.

The company has been hit hard by the loss of Rolex watches and products in its line up. Rolex cut off the company's supply in January 1998. Crisson's retails Rolex watches on the Island.

COURTS CTS