Article: Elon Musk wants to send investor ‘short shorts,’ as he battles David Einhorn

Article - Media

Elon Musk wants to send investor ‘short shorts,’ as he battles David Einhorn

DailyMail, 9 November 2019

Elon Musk has offered to send a pair of ‘short shorts’ to his biggest critic and Tesla short seller David Einhorn, after the hedgefund boss was forced to admit to his shareholders that he’s lost money betting against the automaker.

Musk’s jibe came after Einhorn took a swipe at the Tesla owner in a letter to his shareholders last week, in which he claimed that the ‘accepted reality (at Tesla) appears to be that Elon Musk is above the law.’

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Article: Tesla’s Musk, Greenlight’s Einhorn taunt each other on Twitter

Article - Media

Tesla’s Musk, Greenlight’s Einhorn taunt each other on Twitter

Reuters, 8 November 2019

Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk and noted short-seller David Einhorn mocked each other in open letters published on Twitter on Friday, trading barbs clothed in polite language.

Einhorn on Oct. 30 had told his investors at Greenlight Capital that his fund had lost money on Tesla. Greenlight bet against the electric carmaker, and shares rose in the second quarter.

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Article: The PSLRA’s Discovery Stay During the Pendency of a Motion To Dismiss Applies in State Court Actions Asserting 1933 Act Claims

Article - Media, Publications

The PSLRA’s Discovery Stay During the Pendency of a Motion To Dismiss Applies in State Court Actions Asserting 1933 Act Claims

Craig S. Waldman ,  08 November 2019

One of the PSLRA’s key procedural protections is the automatic stay of discovery during the pendency of a motion to dismiss. This serves “to protect defendants … from the burden and expense of premature discovery … until the court sustains the sufficiency of the complaint.” ATSI Communications v. Shaar Fund, Ltd., 2003 WL 1877227, at *2 (S.D.N.Y. April 2, 2003). “The legislative history of the PSLRA indicates that Congress enacted the discovery stay to prevent plaintiffs from filing securities class actions with the intent of using the discovery process to force a coercive settlement.” In re LaBranche Sec. Litig., 333 F. Supp. 2d 178, 181 (S.D.N.Y. 2004). Congress also aimed “to prevent plaintiffs from … using [a meritless lawsuit] as a vehicle ‘in order to conduct discovery in the hopes of finding a sustainable claim not alleged in the complaint.’” In re Vivendi Universal, S.A. Sec. Litig., 381 F. Supp. 2d 129, 129-30 (S.D.N.Y. 2003) (quoting S. Rep. No. 104-98, at 14 (1995)). Continue reading “Article: The PSLRA’s Discovery Stay During the Pendency of a Motion To Dismiss Applies in State Court Actions Asserting 1933 Act Claims”

Article: London Court Hears £1B Forex-Rigging Case Against Five Banks

Article - Media, Publications

London Court Hears £1B Forex-Rigging Case Against Five Banks

Aziz Abdel-Qader, 05 November 2019

The case accusing Barclays, Citigroup, JPMorgan, Royal Bank of Scotland, and UBS of foreign exchange rigging is scheduled to be heard at London’s tribunal on Wednesday.

The five global banks are facing a £1 billion ($1.3 billion) class-action lawsuit that seeks to compensate pension funds, asset managers, hedge funds, and corporations that lost out because these banks participated in a market manipulation scheme between 2007 and 2013. However, the total value of potential fines will depend on the number of forex trades executed in London, and the proportional impact of rate-rigging on GBP trades. Continue reading “Article: London Court Hears £1B Forex-Rigging Case Against Five Banks”

Article: Fraser Perring: Chronicles of Deceit, Part I

Article - Media

Fraser Perring: Chronicles of Deceit, Part I

Roddy Boyd

Foundation for Financial Journalism, 4 November 2019

Forty-six-year-old Fraser Perring, a resident of Lincoln, England, founded and runs Viceroy Research with two other analysts. Their investigations of what they claim are misleading corporate disclosures or flawed business models have regularly sent the stock prices of their targets spiraling downward.

But as revealed by a seven-month investigation by the Southern Investigative Reporting Foundation, Perring is a charlatan of the first order, with a brazen multiyear record of personal and professional deceit. It makes one wonder, If Perring is fudging the truth to reporters about houses and cars, what else is he not on the level about? A lot, it turns out.

The first part of this investigation lays out Perring’s erratic and troubling conduct, including some dubious methods to generate interest for his research on stock message boards and his impersonating a well-known hedge fund manager. Part two will examine the real forces backing and benefiting the business model of Perring and many other activist short sellers.

 

Fined: C. L. King & Associates, Inc. Fined by FINRA

Fined

C. L. King & Associates, Inc. Fined by FINRA

A National Adjudicatory Counsel (NAC) decision became final in which the firm was censured, fined $342,000 and ordered to retain an independent consultant and Miller was fined $20,000, suspended from association with any FINRA® member in any principal and supervisory capacity for three months and required to requalify by examination before acting in any principal or supervisory capacity.

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