SEC Sues Andrew Left and Citron Capital for Alleged $20 Million Fraud, $16 Million in Illegal Profits

Jul 26, 2024, 12:08 PM

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Andrew Left and his firm, Citron Capital, alleging fraud related to stock short sales. The SEC's complaint accuses Left and Citron of manipulating the market through misleading reports and trading practices, including social media posts and research reports. The lawsuit claims that Left and Citron made illegal profits, with allegations of a $20 million fraud scheme. Additionally, federal prosecutors have charged Left with securities fraud and lying to investigators about his ties to a hedge fund. The SEC alleges that Left manipulated the prices of 15 stocks, earning $16 million in the process. Citron Research recently announced they were short Gamestop, $GME, in a post on X.