In New York on Jan 28, short seller Andrew Left is urging a judge to dismiss U.S. charges alleging market manipulation and investor fraud linked to his negative reports on companies. The founder of Citron Capital faces accusations from July, claiming he misled investors over his positions in various stocks, including Nvidia and Tesla. The case follows a lengthy Justice Department investigation into short sellers.
In a motion to dismiss the charges filed in federal court in California on Monday, Left's lawyer argued that prosecutors' claims are based on his opinions, stating that the government failed to prove he did not believe them. The lawyer contended that the information in question was immaterial to investors, and Left had no obligation to disclose it.
"Concealing economic information necessary for others to make discretionary economic decisions is not fraud," stated Left's lawyer James Spertus in the filing.
The U.S. attorney's office in Los Angeles, responsible for the charges, was not immediately available for comment.