Christian Attar Law Firm in partnership with Warshaw Burstein, LLP, in association with forensic investigators, have concluded the magnitude of the spoofing is unprecedented, resulting in over 5 billion shares being issued at artificially deflated prices since Company’s Nasdaq debut in November 2021
BREA, Calif., Dec. 06, 2023 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacture, today announces the Company has filed a complaint in the United States District Court for the Southern District of New York alleging that UBS Securities, LLC, IMC Financial Markets and Clear Street Markets, LLC (the “Defendants”) engaged in a market manipulation scheme that violated Section 10(b) and Rule 10b-5(a) and (c) and Section 9(a) of the Securities Exchange Act of 1934. This lawsuit alleges that between Nov. 9, 2021, and Nov. 9, 2023, the Defendants and/or their customers used spoofing to manipulate the market price of Mullen shares.
FINRA has characterized spoofing as an insidious form of market manipulation that undermines the transparency and integrity of the markets by distorting the true nature of supply and demand. Spoofing involves the submission and cancellation of non-bona fide buy and sell orders that have no legitimate economic purpose and are not intended to be executed. The actual purpose of these orders is to trick shareholders into placing their own orders at a time, price and quantity that they otherwise would not have.
What is spoofing:
Placing fake baiting orders to sell
The sole purpose of placing the order was to deceive and mislead other market participants into thinking the stock price is naturally declining
Once the stock declines, the spoofer places an order to purchase at a lower price and then cancels the fake baiting orders to sell
“In the 21 years our team has been prosecuting market manipulation cases against Wall Street, I believe this could be one of the largest and strongest spoofing and market manipulation cases we have handled. After working with our consulting and investigative experts, I believe the damage model could be in the billions of dollars,” said Wes Christian of Christian Attar Group.
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Alan Pollack, a partner in Warshaw Burstein and co-lead counsel in this case, believes that, “This is an important lawsuit for our client for several reasons including, the enormous magnitude of the spoofing activities of the Defendants; the devastating adverse impact the Defendants’ manipulative conduct has had on the price of Mullen’s shares and the commitment of Mullen’s management to protect the value of shareholder equity in the Company.”
Bullish
