Pursued by Shadow
Type: Treachery
Encounter Set: Sauron's Reach
When Revealed: Each player raises his threat by 1 for each character he controls that is not currently committed to a quest.
Shadow: Defending player chooses and returns 1 exhausted ally he controls to its owner's hand. If he controls no exhausted allies, raise his threat by 3.

*text from cardgamebb.com (Thanks!!)

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I have a question regarding the Shadow Effect of the card.

I had following situation:

As the Misty Mountains Goblins attack, I deal the Shadow Card. Then I decide to defend with my wounded Guard of the Citadel. As I flip up the Shadow Card it turns out to be Pursued By Shadow. So, if I take back my Guard of the Citadel, does the Attack still count as defended? It seems so, in addition the damage of the enemy is prevented? Or would this just nullify the defense and the attack would become undefended?

 Resolve shadow effect is a separate step that comes before determine combat damage, so I would say the attack is no longer defended.

yep, agreed.