Have the CA Attorney General and Others investigate Andrew Left of Citron Research
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Andrew Left of Citron Research is a known short sell activist. He have launched short sell campaigns against Tesla, Inovio Pharmaceuticals, Nvdia, Shopify, Wayfair, Facebook, Netflix, GBTC, and many others. While, I don't agree to take a position on all these companies, one might say some of Andrew Left's campaigns are a bit aggressive. In the past, he has alluded to Shopify being a scam or ponzi. While many of his campaigns are not too aggressive, he has launched investigative reports against 51 S&P 500 companies.
Andrew has been previously sanctioned by the NFA in which they stated he, "made false and misleading statements to cheat, defraud or deceive a customer in violation of NFA compliance rules". He later went on to receive a similar Market Misconduct Tribunal sanction.
One of his recent stunts was shortening a recently publicly debuted stock known as Nanox Imaging (NNOX). His short report alluded to Nanox being a farce, fraud, and gave NNOX a $0 target. He also stated, to have "not even seen proof of the product". After his simple post, over a billion dollars was knocked from a small cap stock in a matter of days. Many of the claims in the report have already been questioned by a fintech startup, and people like John Nasta, Brian Feroldi, and Dr. Michael Yuz seem to be bullish or believe Nanox is of merit. A variety of the claims in the Citron report have been known to be more than likely outright false.
Outside of causing investors millions or billions off of one post, there are likely more concerns. This seems to be a reoccurring theme with Andrew Left. Many activist investors like Bill Ackman have reputable names on Wall Street, extensive due diligence reports, and seemingly well sourced work. It is in my opinion that if an activist investor as reputable and brilliant as Bill Ackman ever launched due diligence of the same quality as Citron Research, it would tarnish his name on Wall Street. The problem isn't with activist investors or institutional short activist. The problem is with potentially misleading the general public or the publishing of harmful information pertaining to a false premise.
California whether a progressively liberal or conservative state, carries one of America's biggest hubs of innovation. Silicon Valley is a huge part of what makes America the land of opportunity. Many small cap companies are likely reconsidering going public because of how aggressive some firms like Citron might be. Also corporations and enterprises in Silicon Valley and throughout the rest of the country and world, have suffered likely from the reports Citron Research puts out.
Outside of being notoriously short on many things or flip flopping positions, Citron Research have also previously launched a bullish/long idea on Luckin Coffee. This was close to Luckin Coffee's peak price. Later, many Luckin Coffee executives were fired, and it was believed that Luckin inflated its sales revenue, subsequently Luckin was delisted from the NASDAQ. Investors who may have listened to Citron Research's report probably got burned. While it is of Andrew Left's freedom to post an idea, posts like this haven't yet brought enough questions in regards to his due diligence. Andrew Left has aggressively defended Luckin Coffee prior to its crash, and stated he believes the price can double to over $60.
Because of California's Anti-SLAAP laws, opinions about publicly traded companies might be considered of public issue. However, many forms of libel stand as ground of a civil lawsuit. This is especially true when done against a business. "Short and Distort" is also considered securities fraud. If somebody says untrue information negative about a company with the intention of bringing its stock price down for monetary gain, that can be considered securities fraud. More then likely it also won't be protected by Anti-SLAAP laws. Fraud and orchestrating harmful, illicit activities for forms of monetary gain aren't constitutionally derived Free Speech.
I am not claiming that Citron Research have intentionally committed fraud or misinformation campaigns. This is for courts to decide if the Attorney General or Securities Commission were to pursue an investigation. However, I would like you to draw your own conclusions. A lot of damage have likely already been done to many people of the general public.
I urge California if it is an innovation forward state to look into Citron Research. I hope that if Xavier Becerra sees this, he pursues action on behalf of the little people.
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