Article: Hedge Fund Says Banks’ Spoofing, Naked Shorting Cost It Big

Article - Media, Publications

Hedge Fund Says Banks’ Spoofing, Naked Shorting Cost It Big

Jon Hill, 29 January 2021

A Bermuda-based hedge fund has accused several major financial institutions’ U.S. and Canadian securities arms of engaging in spoofing and naked short-selling, alleging in a new Manhattan federal court lawsuit that their tactics caused it to suffer losses in the tens of millions of dollars back in 2016.

In a complaint filed Thursday, Harrington Global Opportunity Fund Ltd. said U.S. and Canadian broker-dealer affiliates of Bank of America, TD Bank, UBS and several other large financial institutions drove down the stock price of the former Concordia International Corp. through illegal trading practices, forcing the hedge fund to sell its own shares in the pharmaceutical company at artificially low prices.   Continue reading “Article: Hedge Fund Says Banks’ Spoofing, Naked Shorting Cost It Big”

Paper: Market Manipulation and Directors Fiduciary Duty of Care

Paper

Market Manipulation and Directors Fiduciary Duty of Care

Market manipulation of emerging or small cap companies is pervaasive on Wall Street and according to the SEC has increased over 37% in the last decade. The nature and scope of market manipulation schemes is limited only by the creativity and audacity of their perpetrators.  While the substance and mechanics of market manipulation schemes may differ, the objective is the same – to inject false information into the marketplace that artificially affects the price of the  target companies securities by “interfering with the natural interplay of the forces of supply and demand.” The proliferation of market manipulation scshemes has created challenging risk-management and best practice issues for the directors of targeted companies, which require directors to continuously assess the nature and scope of their fiduciary duty of care.

Continue reading “Paper: Market Manipulation and Directors Fiduciary Duty of Care”