U.S. Charges Activist Short Seller Andrew Left with Market Manipulation and Fraud

U.S. authorities have charged Andrew Left, a prominent activist short seller, and his fund Citron Capital with market manipulation and defrauding investors. Left allegedly used misleading claims about his stock positions, including Nvidia and Tesla, to make significant profits. If convicted, Left faces severe penalties.

U.S. authorities have leveled charges against renowned activist short seller Andrew Left and his fund Citron Capital, accusing him of manipulating the market and defrauding investors through misleading claims about his positions in numerous stocks including Nvidia and Tesla.

The Justice Department and the Securities and Exchange Commission announced that Left utilized his social media presence and cable news appearances to promote trades, only to quickly reverse his positions, garnering up to $20 million. Allegations also state that Left accepted compensation from hedge funds in exchange for advance notice of his positions.

Left's attorney asserts that Left will contest the charges, maintaining his client has always adhered to legal requirements. Known for his flamboyant style, Left has frequently targeted high-profile companies. The charges conclude a prolonged investigation into short-seller activities. If found guilty, Left faces substantial prison time as well as financial penalties and possible industry bans.

(With inputs from agencies.)