NorthWest Biotherapeutics Inc (NWBO)

[ae kusterer]

https://twitter.com/hoffmann6383/status/1679838285437313024

7/12/23 Citadel motion to disniss(MTD):

https://storage.courtlistener.com/recap/gov.uscourts.nysd.590344/gov.uscourts.nysd.590344.115.0.pdf


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172337711


ae kusterer

Re: None

Thursday, July 13, 2023 10:19:11 PM

Post#
609553
of 609565
Charles: Citadel’s motion to dismiss gets dismissed 9/27/23.Does Ken Griffin (= 85% Citadel) want discovery by Laura Posner(= Cohen Millstein= just got a $ 1 Billion settlement from Wells Fargo= same judge = Gregory Howard Woods III ) and the DOJ= Joshua Mitts) ?

https://reuters.com/markets/us/us-action-short-sellers-likely-next-few-months-doj-official-2023-05-24/#:~:text=Since%20at%20least%202021%2C%20the,publication%20of%20negative%20research%20reports. https://foxbusiness.com/video/6331140073112 $nwbo
@alphavestcap
foxbusiness.com
Charles Payne's beef with short shellers: They squeeze with impunity | Fox Business Video
'Making Money' host Charles Payne argues short sellers have way too much latitude to create havoc in the market.

https://twitter.com/hoffmann6383/status/1679599682014552064

https://twitter.com/hoffmann6383/status/1679528554424303618

https://www.law.columbia.edu/sites/default/files/2020-08/joshua-mitts-cv_august_2020.pdf

Northwest Biotherapeutics, Inc. Securities Litigation
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Cohen Milstein Secures a Historic $1 Billion Settlement for Shareholders in Wells Fargo Securities Class Action
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Charles Payne's beef with short shellers: They squeeze with impunity
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Memorandum of Law in Support of Motion – #115 in Northwest Biotherapeutics, Inc v. Canaccord Genuity LLC (S.D.N.Y., 1:22-cv-10185) – CourtListener.com
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Harrington Glob. Opportunity Fund v. CIBC World Mkts. Corp., 585 F. Supp. 3d 405 | Casetext Search + Citator
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$NWBO v. Canaccord Genuity LLC, @citsecurities, G1 Execution Services, LLC, GTS Securities LLC, Instinet LLC, Lime Trading Corp., and Virtu Americas LLC Case No. 1:22-cv-10185 (GHW) (GWG) I'll quickly review the arguments raised in Defendants' MTD filed in the above case on…

hoffmann6383
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$NWBO v. Canaccord Genuity LLC,
@citsecurities
, G1 Execution Services, LLC, GTS Securities LLC, Instinet LLC, Lime Trading Corp., and Virtu Americas LLC

Case No. 1:22-cv-10185 (GHW) (GWG)

I'll quickly review the arguments raised in Defendants' MTD filed in the above case on 7-12-23 and compare it to the 2-9-22 MTD ruling in the Harrington case (a similar case based on spoofing also in the SDNY): https://casetext.com/case/harrington-glob-opportunity-fund-v-cibc-world-mkts-corp

First, the timelines for NWBO's MTD briefing schedule:

August 25, 2023: Plaintiff will submit an opposition brief of up to the total number of pages of the joint memorandum submitted by Defendants.

September 27, 2023: Defendants will submit a joint reply memorandum of law, not to exceed 25 pages.

Defendants' MTD Arguments:

1. Failure to Plead Manipulative Acts

Defendants' claim that to satisfy Rule 9(b), NWBO must specify “what manipulative acts were performed, which defendants performed them, when the manipulative acts were performed, and what effect the scheme had on the market for the securities at issue.” ATSI, 493 F.3d at 102.

Harrington comments on manipulative acts:

"That the Complaint mentions that Defendants trade for their own proprietary accounts and the accounts of their customers does not undercut the Complaint’s numerous allegations that Defendants designed and operated the algorithms that spoofed Concordia stock." See Image 1 for further relevant comments.

Thoughts: Losing argument for the Defendants in Harrington. Losing argument for the more detailed First Amended Complaint in the NWBO case.

2. Failure to Plead Scienter

Defendants' claim NWBO failed to allege facts (i) to demonstrate “defendants had both motive and opportunity to commit the fraud,” or (ii) “constituting strong circumstantial evidence of conscious misbehavior or recklessness.” ATSI, 493 F3d at 99.

Harrington comments on scienter:

In addressing scienter, the Court in Harrington stated, among other things:

“Defendants’ argument is unfounded because “[a] claim of manipulation . . . can involve facts solely within the defendant’s knowledge; therefore, at the early stages of litigation, the plaintiff need not plead manipulation to the same degree of specificity as a plain misrepresentation claim.” ATSI Commc’ns, 493 F.3d at 102; accord In re Tether & Bitfinex Crypto Asset Litig., No. 19 Civ. 9236, 2021 WL 4452181, at *33 (S.D.N.Y. Sept. 28, 2021). If Defendants’ argument were correct, it is hard to fathom how any plaintiff could plead a market manipulation claim based on spoofing through high-frequency trading algorithms.” See Image 2.

Thoughts: Nearly every one of Defendants' scienter arguments are shot down in Harrington. These are losing argument for Defendants in the NWBO case.

3. Failure to Plead Loss Causation

Defendants’ claim NWBO failed to “allege that [it] suffered specific economic harm as a result of Defendants’ conduct.” In re Citigroup Auction Rate Sec. Litig., 700 F. Supp. 2d at 307.

Harrington comments on loss causation:

In addressing loss causation, the Court in Harrington stated,

"It would not be proper to draw the inference sought by Defendants -- that individual spoofing events cannot have a long-term cumulative effect on the price of a stock -- at the motion to dismiss stage. See Carpenters Pension Tr. Fund of St. Louis v. Barclays PLC, 750 F.3d 227, 234 (2d Cir. 2014) (recognizing that “[t]he efficient market hypothesis, premised upon the speed (efficiency) with which new information is incorporated into the price of a stock, does not tell us how long the inflationary effects of an uncorrected misrepresentation remain reflected in the price of a security”). Whether the effects of the alleged market manipulation dissipated is a question of fact that can be answered only upon a more fully developed record."

The Court also made the relevant statements seen in Image 3, as related to loss causation.

Thoughts: NWBO did exactly what the Court in Harrington stated was required for an allegation of loss causation. Just like in Harrington, this allegation in the MTD in NWBO's case will be denied. This is a question for experts and not appropriate in a MTD setting.

4. Failure to Plead Reliance on an Assumption of an Efficient Market

Defendants' claim NWBO failed to plead “reliance on an assumption of an efficient market free of manipulation.” ATSI, 493 F.3d at 101.

Harrington comments addressing reliance:

In addressing reliance, the Court in Harrington stated, “…that the Spoofing Defendants “injected false and misleading information into the marketplace that interfered with the natural forces of supply and demand and drove the price of Concordia’s shares downward” and that Plaintiff relied on an assumption that the market for Concordia shares was efficient and free of manipulation when it sold those shares. These allegations are sufficient to allege reliance. See Sharette v. Credit Suisse Int’l, 127 F. Supp. 3d 60, 101 n.9 (S.D.N.Y. 2015) (quoting Dodona I, LLC v. Goldman, Sachs & Co., 847 F. Supp. 2d 624, 651 (S.D.N.Y. 2012)) (recognizing the requirement of alleging “reliance on an assumption of an efficient market free of manipulation” for market manipulation claims).” See Image 4.

Thoughts: This is another recycled argument that clearly loses per Harrington. This is an expert battle which is inappropriate to be settled in a MTD. FYI - look at NWBO's cite to nobel prize-winning economist Professor Paul Milgrom that touches on this subject.

5. Publicly Available Trading Records Refute NWBO's Claim

While Harrington doesn’t address this specific topic, Laura Posner, in a June 14, 2023 letter to the Court, disputes that Defendants are providing publicly available information, but instead relying on internal data. She states:

“Not only does Citadel provide no evidence whatsoever that it sold shares in the two-minute periods following 669 of its alleged Spoofing Episodes, but the supposed “evidence” it provides for the two episodes it does challenge are simply PDFs of what we must assume are internally created Excel spreadsheets. The PDFs bear no markings from OTC Link, much less order tickets or trade confirmations to prove that such sales took place.”

Thoughts: I looked at Exhibit 11. It’s a PDF spreadsheet that bears no markings from the OTC Link, no order tickets and no trade confirmations. This is a discovery/expert dispute and not appropriate for a MTD. This is a losing argument.

6. NWBO Failed to State a Claim for Common Law Fraud

The Defendants' claim, "NWBO’s common law fraud claim should be dismissed because it is predicated on the same allegations as its flawed Exchange Act claims.”

Thoughts: I won’t go over this because it’s based on the reasons we have already discussed. It will be denied much like the other allegations in the MTD.

Closing Thoughts: Case moves on. MTD denied Q4 '23 or Q1 '24. Discovery up next.
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5:12 PM · Jul 13, 2023
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Jul 12, 2023

MOTION to Dismiss Amended Complaint. Document filed by Canaccord Genuity LLC, Citadel Securities LLC, G1 Execution Services LLC, GTS Securities LLC, Instinet LLC, Lime Trading Corp., Virtu Americas LLC..(Burck, William) (Entered: 07/12/2023)

Main Doc

Dismiss

Buy on PACER
115

Jul 12, 2023

MEMORANDUM OF LAW in Support re: 114 MOTION to Dismiss Amended Complaint. . Document filed by Canaccord Genuity LLC, Citadel Securities LLC, G1 Execution Services LLC, GTS Securities LLC, Instinet LLC, Lime Trading Corp., Virtu Americas LLC..(Burck, William) (Entered: 07/12/2023)

Main Doc

Memorandum of Law in Support of Motion

Download PDF
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116

Jul 12, 2023

Main Doc

Declaration in Support of Motion

Buy on PACER
Att 1

Exhibit 1- U.S. Equity Market Structure (SEC)

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Att 2

Exhibit 2- May 10, 2022 STAT Article

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Att 3

Exhibit 3- NWBO 2019 Form 10-K

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Att 4

Exhibit 4- NWBO 2020 Form 10-K

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Att 5

Exhibit 5- NWBO Dec. 9, 2016 Form 8-K

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Att 6

Exhibit 6- NWBO Stock Price

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Att 7

Exhibit 7- Over-the-Counter Market (SEC)

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Att 8

Exhibit 8- OTC Markets Broker Dealer Directory

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Att 9

Exhibit 9- OTC Link FIXIE Quote Specification

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Att 10

Exhibit 10- Speed of Equity Markets (SEC)

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Att 11

Exhibit 11- October 12, 2020 OTC Link Quote Data

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Att 12

Exhibit 12- January 11, 2021 OTC Link BBO Data

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Att 13

Exhibit 13- October 15, 2020 OTC Link Quote Data

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Att 14

Exhibit 14- October 27, 2020 OTC Link Quote Data

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Att 15

Exhibit 15- October 20, 2020 OTC Link Quote Data

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Att 16

Exhibit 16- November 2, 2020 OTC Link Quote Data

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Att 17

Exhibit 17- November 18, 2020 OTC Link Quote Data

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Att 18

Exhibit 18- December 24, 2020 OTC Link Quote Data

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Att 19

Exhibit 19- February 1, 2021 OTC Link Quote Data Part 1

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Att 20

Exhibit 20- February 1, 2021 OTC Link Quote Data Part 2

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Att 21

Exhibit 21- May 17, 2021 OTC Link Quote Data

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Att 22

Exhibit 22- May 9, 2022 OTC Link Quote Data

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Att 23

Exhibit 23- May 10, 2022 OTC Link Quote Data Part 1

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Att 24

Exhibit 24- May 10, 2022 OTC Link Quote Data Part 2

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Att 25

Exhibit 25- May 10, 2022 OTC Link Quote Data Part 3

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Att 26

Exhibit 26- May 10, 2022 OTC Link Quote Data Part 4

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Att 27

Exhibit 27- May 10, 2022 OTC Link Quote Data Part 5

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Att 28

Exhibit 28- May 10, 2022 OTC Link Trade Data

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and announcements.