Biotech company Northwest Biotherapeutics is suing Citadel and other market makers for allegedly manipulating its stock price.
The company is accusing Citadel Securities LLC, Susquehanna, Virtu, and other Wall Street firms of driving its stock price down through the use of various illicit trading activities.
One being ‘spoofing‘ orders.
The lawsuit was filed on Thursday in Manhattan federal court.
Northwest Biotherapeutics alleged the market makers had repeatedly engaged in “spoofing,“ where traders place orders with an intent to fool other investors about a stock’s demand and manipulate the price.
Northwest, whose shares trade over the counter, also sued Canaccord Genuity Inc., G1 Execution Services LLC, GTS Securities LLC, Instinet LLC, Lime Trading Corp. and Virtu Americas LLC.
Here’s the latest market news.
Join the newsletter for weekly market updates.
Citadel’s Market Manipulation History
The lawsuit comes as no surprise to the retail community as Citadel has a long history of market manipulation.
From getting accounts suspended in China to settling charges of misconduct and abusing their power in the U.S. markets, Citadel has done it all.
Spoofing was outlawed in 2010 so the practice has since been illegal.
In March, the DOJ targeted hedge fund Muddy Waters for flooding the market with fake shares.
In August, a federal jury in Chicago convicted two former JPMorgan traders who had been charged with spoofing in the gold market.
Now Citadel and others are being accused of using spoofing tactics to drive down the price of Northwest Biotherapeutics.
Will these Wall Street giants receive the same consequences as JPMorgan’s former traders?
I’m curious to know what you think.
Leave your thoughts in the comment section down below.