Andrew Left fails to dismiss SEC fraud case for stock manipulation, profit from trades

From Yahoo Finance: 2025-04-23 16:24:00

A federal judge denied Andrew Left’s request to dismiss an SEC lawsuit alleging he manipulated stock prices and profited from contradictory trades. Left’s firm, Citron Research, is accused of not disclosing their true intentions when making stock recommendations. The case is separate from a criminal case Left is also facing, where he has pleaded not guilty.

Left is accused of making at least $16 million in profit over 5-1/2 years by manipulating stock prices, including stocks like Nvidia and Tesla. Authorities claim he used social media and TV appearances to influence stock prices for his benefit. Left’s lawyer expressed disappointment in the judge’s decision, but remains confident in their defense strategy.

Left’s lawyer plans to argue for dismissal of the criminal case on May 5, with a trial date set for March 17, 2026. The lawyer believes they have a strong case for dismissal once they are able to present all the facts. Left’s trading activities are said to have little impact on companies with large market capitalizations.

Short sellers like Left profit from falling stock prices by borrowing and selling stocks, then buying them back later. The judge ruled that defendants who publicly declare their trade positions must disclose their true intentions, even if they contradict their public statements. This duty to disclose extends to their underlying intent to trade inconsistently with their published target prices.



Read more at Yahoo Finance: Prominent short seller Andrew Left fails to end US SEC fraud case