Replies to post #746756 on NorthWest Biotherapeutics Inc (NWBO)

[XMaster2023]

The penalty should be their trading license in addition to monetary fines.

[DJPele]

Still need to see objections filed, followed by Judge Woods decision, but overall this is good news!

[dennisdave]

The court's ruling in Northwest Biotherapeutics (NWBO) vs. market makers (Citadel, etc.) is a mixed outcome that both validates NWBO's claims and limits their scope. Here’s a breakdown of the key takeaways:

Positive Aspects for NWBO:
Loss Causation Established for 40M Shares:
The court agreed that NWBO sufficiently pleaded loss causation for approximately 40 million shares that were directly affected by spoofing episodes on specific dates.This is significant because it means the lawsuit moves forward for this subset of shares, and NWBO could potentially recover damages related to them. Market Manipulation & Scienter Recognized:

The ruling supports NWBO’s claim that the defendants engaged in manipulative trading (spoofing) and had the required scienter (intent to deceive or manipulate the market). This strengthens the broader argument that these market makers engaged in improper trading practices.
Negative Aspects for NWBO:

No Long-Term Price Suppression Recognized:
The court ruled that NWBO did not sufficiently plead a long-term, persistent negative impact on its stock price. As a result, claims related to 234 million other shares sold during the entire relevant period were dismissed.
This limits NWBO’s ability to claim damages on a larger scale.

What This Means Moving Forward:
Partial Victory: NWBO has cleared an important hurdle and can proceed with claims related to the 40 million shares. Limitations on Broader Market Impact: The dismissal of claims tied to 234 million shares reduces the overall potential financial impact on the defendants.
Potential Appeal or Further Filings: NWBO may try to amend its complaint or appeal the dismissal of the broader claims, but that would require stronger evidence of long-term price suppression.

Overall Opinion:
This ruling is a partial win for NWBO. It confirms that spoofing manipulation occurred and caused direct damages, but it does not support the broader claim that market makers persistently depressed NWBO’s stock price over the long term. The lawsuit will continue, but with a narrower scope, focusing on specific transactions rather than systemic damage.