Melvin Capital Is Facing Nine Lawsuits Related to the GameStop Frenzy
Michelle Celarier, Institutional Investor, 22 March 2021
Gabriel Plotkin’s Melvin Capital, the hedge fund at the center of the GameStop trading frenzy in January, is a defendant in nine lawsuits by retail investors alleging a conspiracy to limit trading that caused them to lose money.
The hedge fund revealed the existence of the lawsuits in its annual ADV filing with the Securities and Exchange Commission.
Melvin was famously short GameStop and lost more than 50 percent during January following a short squeeze orchestrated by a Reddit forum called WallStreetBets, whose members included retail investors in GameStop. As the stock soared, various online brokerages catering to those investors, including Robinhood, restricted buying shares of GameStop, among other stocks heavily shorted by Melvin.
BitMEX Free of Crypto Market Manipulation Claims in California
Maeve Allsup, 16 March 2021
Cryptocurrency trading platform BitMEX and its founders won dismissal of claims that they illegally manipulated the cryptocurrency market, causing losses for platform users, when a federal judge in California rejected traders’ “kitchen sink” approach.
The complaint, filed in the U.S. District Court for the Northern District of California, alleged 17 causes of action, including violations of the Commodity Exchange Act, the Racketeer Influenced and Corrupt Organizations Act, and state law. Continue reading “Article: BitMEX Free of Crypto Market Manipulation Claims in California”
SEC Obtains Emergency Asset Freeze, Charges California Trader with Posting False Stock Tweets
Washington D.C., March 15, 2021 —
The Securities and Exchange Commission today announced fraud charges and an asset freeze and other emergency relief against an Irvine, California-based trader who used social media to spread false information about a defunct company, while secretly profiting by selling his own holdings of the company’s stock.
Continue reading “Article: SEC Obtains Emergency Asset Freeze, Charges California Trader with Posting False Stock Tweets”
Google Hit With $2B Antitrust Suit Over ‘Rigging’ Its Algorithm
Melissa Angell, 11 January 2021
Video-sharing site Rumble, which reportedly has a large base of politically conservative users, hit Google with a $2 billion antitrust suit Monday in California federal court, accusing the tech giant of unlawfully “rigging” its search algorithm to elevate Google’s own YouTube platform over competitors.
Toronto-based Rumble alleges that the tech behemoth diverted massive web traffic by manipulating its search algorithm to preferentially display YouTube links in the search results over those of Rumble and other video rivals. Continue reading “Article: Google Hit With $2B Antitrust Suit Over ‘Rigging’ Its Algorithm”
Exuberance Over Good News Drives Bionano Genomics’ Wild Week
John Alford, 04 January 2021
Bionano Genomics, Inc. (BNGO) has been on a wild, meteoric rise in the past few days, and after hours on the 31st it continued to skyrocket, rising to $4 a share. On the 31st of December alone, counting market and after-hours trading, share prices surged $1.90, almost doubling. This capped a wild week, and is a momentum-driven mania trade not based on the previous performance or long-term trend of the company. While recently reporting one good report (via a paid PR service), there are obvious issues surrounding the company to the investor that takes the time to evaluate their most recent 10-Q, recent and potential massive dilution, and decreasing revenue. Continue reading “Article: Exuberance Over Good News Drives Bionano Genomics’ Wild Week”
FERC Issues Settlement Order Reaffirming “Gaming” Prohibition in Power Markets
Michael Brooks, Robert (Bob) Pease, 30 October 2020
Last week the Federal Energy Regulatory Commission (FERC) issued an Order Approving Stipulation and Consent Agreement involving High Desert Power Project, LLC (High Desert) and Middle River Power LLC. (Middle River) to resolve allegations of market manipulation in the California Independent System Operator (CAISO) market.
The settlement is noteworthy because it involved allegations of market manipulation that were completely absent of any attempt to influence market prices or to send false signals to the market. This instead is one of the purest examples of FERC taking the position that its market manipulation rule prohibits taking advantage of market design or commitment/dispatch errors (i.e., “gaming”) even when the market is put on notice of the issue. The order should serve as a warning to anybody thinking the current Commission may not embrace this broad theory of manipulation. Continue reading “Article: FERC Issues Settlement Order Reaffirming “Gaming” Prohibition in Power Markets”
Benitec Biopharma Provides Update on BB-301 Tissue Transduction Study
PRNewswire, 08 July 2020
Benitec Biopharma, Inc. (NASDAQ: BNTC), a development-stage, gene therapy-focused, biotechnology company developing novel genetic medicines based on the proprietary DNA-directed RNA interference (“ddRNAi”) platform, today announced the initiation of the BB-301 Tissue Transduction Study in large animal subjects. Continue reading “Article: Benitec Biopharma Provides Update on BB-301 Tissue Transduction Study”
BIONANO GENOMICS ANNOUNCES PRICING OF $18 MILLION UNDERWRITTEN PUBLIC OFFERING
GLOBE NEWSWIRE, 02 April 2020
BIONANO GENOMICS, INC. (BNGO), a genome analysis company that provides tools and services based on its Saphyr® system to scientists and clinicians conducting genetic research and patient testing, today announced the pricing of an underwritten public offering of 54,546,000 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and common warrants to purchase up to an aggregate of 54,546,000 shares of common stock. Each share of common stock and, as applicable, each pre-funded warrant is being sold together with a common warrant to purchase one share of common stock at a combined effective price to the public of $0.33 per share and accompanying common warrant. For each pre-funded warrant Bionano sells, the number of shares of common stock Bionano is offering will be decreased on a one-for-one basis. Continue reading “Article: BIONANO GENOMICS ANNOUNCES PRICING OF $18 MILLION UNDERWRITTEN PUBLIC OFFERING”
PURE MARKET MANIPULATION CLAIMS REMAIN OUT OF REACH FOR SOME SHAREHOLDERS VICTIMIZED BY MYSTERIOUS STOCK PRICE REVERSALS
Emergent Law, 31 October 2017
Wins Finance Holdings Inc. (“Wins”), a company that guarantees loans and leases equipment for small businesses in China, has been the target of multiple securities class action lawsuits ever since the news broke in March of this year that it was under investigation by the SEC for market manipulation of its stock. Incredibly, the stock price of Wins soared over 4,000% since the inception of trading near the end of 2015, with no company news headlines to explain this market bubble. On March 30, 2017, the investment analytics site Seeking Alpha reported the SEC investigation and the fact that Wins had mislead the Russell Index into including the company based upon a false report of the location of its headquarters.
On this news, the stock price plunged back to levels below $50 per share, only to be followed by another mysterious spike up to the $200 level in the early summer of this year. On June 7, 2017, NASDAQ announced that it was halting trade in Wins stock pending the receipt of further information from the company. On August 4, 2017, NASDAQ sent Wins a delisting determination letter, but withdrew this letter on October 19, 2017. The stock remains halted while NASDAQ awaits further information from Wins. Continue reading “Article: PURE MARKET MANIPULATION CLAIMS REMAIN OUT OF REACH FOR SOME SHAREHOLDERS VICTIMIZED BY MYSTERIOUS STOCK PRICE REVERSALS”
Benitec: The Health Payer’s Dream Biotech
Pannobhaso, 12 March 2014
When it comes to forecasting the size of the market for drugs to treat various diseases, the estimates for the same disease can seem to fluctuated wildly depending on the model used and the timeframe of the forecast. However, one thing that is fairly consistent is that for many of the major diseases, these forecasts involve big numbers – billions of dollars. However, as a guide to pharmaceutical earnings, these forecasts are meaningless if health payers cannot afford the costs. Continue reading “Article: Benitec: The Health Payer’s Dream Biotech”
United States: Open-Market Manipulation Under SEC Rule 10b-5 And Its Analogues: Inappropriate Distinctions, Judicial Disagreement And Case Study: FERC’s Anti- Manipulation Rule
Maxwell K. Multer, 01 September 2011
Regulators have addressed market manipulation with Rule 10b-5 since its promulgation under the Securities Exchange Act in 1942. While Section 9 of the Securities Exchange Act addresses manipulation of securities prices, it requires the specific intent “for the purpose of inducing the purchase or sale of such security by others”1 or “for the purpose of creating a false or misleading appearance [of market activity] . . ..”2 It is likely for that reason that prosecutors rarely use Section 9, choosing instead to bring manipulation proceedings under Rule 10b-5.3 But as the tools available for accomplishing market manipulation have evolved, the judicially narrowed contours of Rule 10b-5 may be such that certain new schemes escape liability. With modern advances in trade execution, market platforms and derivatives, it is now possible to accomplish a profitable market manipulation without engaging in any overtly fraudulent or illegal behavior.
Several courts have elected to distinguish between these alleged schemes and schemes which do include illegal behavior, employing a higher level of scrutiny and requiring proof of additional elements in the former situation. Manipulative schemes are referred to as “open market manipulations” when the alleged scheme is accomplished solely through the use of facially legitimate open market transactions. That is, where the manipulator has not engaged in any conduct that is inherently or otherwise illegal, such as fictitious transactions, wash sales or by disseminating false reporting. The transactions are seemingly legitimate, but for their manipulative intent and effect in combination. Continue reading “Article: United States: Open-Market Manipulation Under SEC Rule 10b-5 And Its Analogues: Inappropriate Distinctions, Judicial Disagreement And Case Study: FERC’s Anti- Manipulation Rule”