Biotech Company Suing Citadel Over Market Manipulation

Citadel Market Manipulation
Market News: Biotech Company sues Citadel for market manipulation.

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.

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Citadel’s Market Manipulation History

Citadel market manipulation
Stock Market News: Citadel accused of market manipulation | Citadel lawsuit + more.

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.

Related: How Bloomberg’s Beloved Citadel Securities Manipulates the Market

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Source: WSJ


4 Comments

  1. Daryl Olson

    There probably should be hundreds of companies suing Citadel, GS, JPM,….. for widespread naked shorting, FTD, manipulating trades in dark pools as well as the Federal Reserve for complicity by hiding trade data in DTCC and manipulating interest rates/talk for huge gains thru fear and greed…
    It was reported that Ken Griffin (Citadel) has donated millions to GOP candidates (to prevent oversight by SEC/DOJ?). GOP controlled SC has issued some rulings reducing oversight authority of gov agencies. However, Dem appointed Gensler seems to work more for the hedge funds (“crooks”) than for the retail investors, so it appears both sides have been bought off to an extent.

  2. Michael John Stenson

    Yeah, I’m sure the ones in charge will choose a couple fall guys and pay a big fine, which to them isn’t big at all. Unless a bunch of wealthy elitists grow a conscience, any chance of that happening?

  3. HOWARD SELCER

    Why isn’t AMC doing the same? Long over due for AMC by the way.

  4. FrankNez

    Let’s start a discussion! Leave your thoughts below.

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