Key facts
- Andrew Left, founder of Citron Research, convicted on 13 of 17 market manipulation counts.
- Prosecutors alleged Left used public recommendations and social media to influence stock prices between 2018 and 2023.
- The alleged scheme generated over $20 million in profits.
- Left testified his opinions were genuine and reflected honest assessments.
- Sentencing is scheduled for August 31.
Andrew Left, founder of Citron Research and a prominent short-seller, has been found guilty on 13 out of 17 counts in a federal market manipulation jury trial in Los Angeles. Prosecutors contended that between 2018 and 2023, Left utilized his public stock recommendations and social media posts to influence market prices, while his private trading activities contradicted his public statements. This alleged scheme is estimated to have generated over $20 million in profits. The Justice Department stated that Left used his media appearances to manipulate the stock market for personal gain, emphasizing the importance of fair and transparent securities markets. Left testified in his defense, asserting his opinions were genuine and his assessments honest, rejecting accusations of intentional market misdirection. The verdict is being closely watched on Wall Street, potentially setting a precedent for activist investing and short selling. Left faces sentencing on August 31 and plans to appeal the verdict. He expressed disappointment, stating it's a "sad day for free speech" and that he was penalized for giving "honest opinions." Assistant Attorney General A. Tysen Duva stated that Left "callously boasted that it was like 'taking candy from a baby,'" and that such egregious schemes warrant prosecution when they involve criminal manipulation.