Tag: Ken Griffin Lawsuit

Citadel, Virtu, Susquehanna Fight Biotech Company Lawsuit

Market News Daily - Citadel, Virtu, Susquehanna Fight biotech company lawsuit.
Market News Daily – Citadel, Virtu, Susquehanna Fight Biotech Company Lawsuit.

Citadel, Virtu, Susquehanna, and others are fighting a lawsuit from cancer research company Northwest Biotherapeutics (OTCMKTS:NWBO).

Others in the lawsuit include Canaccord Genuity LLC, G1 Execution Services LLC, GTS Securities LLC, Instinet LLC, and Lime Trading Corp.

Some retail investors might be familiar with a few of these names involved in the handling of their MMTLP shares, which developed into one of the biggest financial frauds on Wall Street.

Northwest Biotherapeutics has sued eight of the US’s largest market-making traders alleging they drove down its share price by placing sell orders they had no intention of executing, also known as ‘spoofing’.

The complaint, filed by Northwest Biotherapeutics in a federal court in New York on Thursday, claimed that the traders “deliberately engaged in repeated spoofing that interfered with the natural forces of supply and demand” by placing tens of millions of fake orders between December 2017 and August of last year.

Comments from Northwest Biotheraputics

The trading companies would then cancel those orders and buy Northwest’s shares at an artificially lower price, the complaint alleged.

Lawyers for the clinical-stage biotechnology firm claimed a “particularly egregious example” of this activity took place in May, after the publication of what they maintain were positive trial data for Northwest’s DCVax-L brain cancer drug.

The study’s design had been questioned by scientists, per FT.

The news “should have caused NWBO’s share price to increase, absent manipulation in the market”, they wrote, referring to the company’s stock symbol.

Instead, it dropped from $1.73 to a low of $0.3862. 

“This staggering decline of 78 per cent in the price on a day with extremely positive news about the company was caused by defendants’ relentless and brazen manipulation of the market for NWBO shares,” lawyers at Cohen Milstein Sellers & Toll added.

Ken Griffin Objects to the Allegations

“This frivolous lawsuit appears to be nothing more than an attempt by Northwest Biotherapeutics to divert attention away from its long history of governance and management failures, SEC charges for financial reporting lapses, and lawsuits from its own shareholders,” Citadel Securities said in a statement.

“We intend to pursue any and all legal action against Northwest Biotherapeutics for making these false and baseless allegations, which only undermine the integrity of our capital markets,” the trading company added.

“It’s already underhanded to engage in market manipulation, but to do so at the expense of cancer patients, some of whom have no other treatments to place their hopes on, is unconscionable,” said Laura Posner, a partner at Cohen Milstein.

Retail investors are enraged by the continued scandals from Citadel and other market makers.

Citadel has a long history of market manipulation and fines.

“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game,” says ex-Citadel Data Scientist Patrick McConlogue.

Shares of NWBO stock are currently trading at $0.64, respectively.

The retail community wants to see some form of justice surrounding the lawsuit.

The U.S. government is treading a fine line waiving market injustices — the SEC recently scrapped plans to vote on a hedge fund transparency rule.

Plaintiffs File Motion to Dismiss

Today, Citadel and the defendants have filed a joint memorandum of law in support of motion to dismiss this case.

If the motion to dismiss is approved, retaliation from investors around the world may grow.

In January, Occupy SEC 2023 raised awareness of the market injustices the retail community has endured over the past years.

While the protest was peaceful, the neglect is hurting the lives of real people and there’s no telling just how far these events may eventually escalate to.

Investors on social media fear peaceful protests are no longer going to create an impact but rather through alternative means.

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Market News Today - Citadel, Virtu, Susquehanna Fight biotech company lawsuit.
Market News Today – Citadel, Virtu, Susquehanna Fight Biotech Company Lawsuit.

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Citadel’s Ken Griffin Sues IRS for Leaking Financial Data

Market News: Citadel's Ken Griffin sues IRS.
Market News: Citadel’s Ken Griffin sues IRS.

[Bloomberg] Billionaire hedge fund manager Ken Griffin sued the US Internal Revenue Service, claiming it failed to protect his confidential financial information. 

The Citadel founder is seeking financial damages over a data breach that resulted in ProPublica’s publication of information on a number of the wealthiest people in the US. He accused the IRS of “willful and intentional failure to establish appropriate administrative, technical, and/or physical safeguards.”

The lawsuit, filed Tuesday in federal court in Florida, also names as a defendant the US Treasury Department, which includes the IRS.

The IRS didn’t respond to a request for comment on the suit, per Bloomberg reports.

“IRS employees deliberately stole the confidential tax returns of several hundred successful American business leaders,” Griffin said in a statement in response to a request for comment.

“It is unacceptable that government officials have failed to thoroughly investigate this unlawful theft of confidential and personal information. Americans expect our government to uphold the laws of our nation when it comes to our private and personal information — whether it be tax returns or health care records.”

Related: Ken Griffin Speaks Out on Retail and FTX Collapse

Ken Griffin Net Worth

Ken Griffin Net Worth
Market News: Ken Griffin sues IRS | Ken Griffin Net Worth Update – Bloomberg, Franknez.com.

Republicans, who won control of the House of Representatives in last month’s election, have pledged to use their newfound power to investigate the breach and the IRS response.

Government officials who have expressed concern about the leak include Treasury Secretary Janet Yellen, who referred to it as “criminal activity” and vowed to work with federal investigators to find the source. 

The ProPublica report said billionaires including Jeff Bezos and Elon Musk had in some years paid minimal or no income tax even as their fortunes soared.

It outlined the tax strategies available to the top 0.1%. 

Ken Griffin reported an average annual income of almost $1.7 billion between 2013 and 2018 and paid an average federal tax rate of 29.2% during that time, ProPublica reported. 

Griffin, 54, has a net worth of $29 billion, according to the Bloomberg Billionaires Index.

Michael Bloomberg, majority owner of Bloomberg News parent Bloomberg LP, was also among those included in the reporting.

Related: Ken Griffin Spent $54 Million to Fight a Tax Increase on The Rich

Ken Griffin Lawsuit 2023

In his lawsuit, Griffin says he requested that the IRS and Treasury demand ProPublica return or destroy confidential IRS data and provide him with information about the disclosure of his tax data, and hasn’t seen “any meaningful response.”

He asked the court to order the defendants to produce documents related to the disclosure of his tax information, as well as for the monetary damages.

Ken Griffin Sues IRS
Ken Griffin sues IRS news, Source: Document.

The case is Griffin v. Internal Revenue Service, 22-cv-24023, US District Court, Southern District of Florida.

Source(s): Bloomberg.

Curated by Frank Nez.

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